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What is the unrealized gain (loss) reported in profit or loss for the year 2021? A. P31,000 B. (P31,000) C. P43,000 D. (P43,000) - How much was the gain or loss on the sale of CD shares?

What is the unrealized gain (loss) reported in profit or loss for the year 2021? A. P31,000 B. (P31,000) C. P43,000 D. (P43,000) - How much was the gain or loss on the sale of CD shares?

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter13: Investments And Long-term Receivables
Section: Chapter Questions
Problem 1MC
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-  What is the unrealized gain (loss) reported in profit or loss for the year 2021?
A. P31,000
B. (P31,000)
C. P43,000
D. (P43,000)

- How much was the gain or loss on the sale of CD shares?
A. P1,100 gain
B. P2,000 gain
C. P15,000 loss
D. P15,900 loss
B. During 2021, Strawberry Corporation purchased several equity securities, all of which are designed as equity investments at fair value through profit or loss. The cost and market values at December 31, 2021 were as follows: Security AB Company ordinary (200 shares) CD Company ordinary (1,000 shares) EF Company ordinary (2,000 shares) Cost P 28,000 170,000 315,000 Market P 34,000 153,000 295,000 Appropriate valuation entry was made on December 31, 2021. On January 31, 2022, Strawberry Corporation sold 1,000 ordinary shares of CD Company at P155 per share, incurring P900 in broker's commission and taxes. On December 31, 2022, the market values of the ordinary shares of AB Company and EF Company were P150 and P153 per share, respectively.
Transcribed Image Text:B. During 2021, Strawberry Corporation purchased several equity securities, all of which are designed as equity investments at fair value through profit or loss. The cost and market values at December 31, 2021 were as follows: Security AB Company ordinary (200 shares) CD Company ordinary (1,000 shares) EF Company ordinary (2,000 shares) Cost P 28,000 170,000 315,000 Market P 34,000 153,000 295,000 Appropriate valuation entry was made on December 31, 2021. On January 31, 2022, Strawberry Corporation sold 1,000 ordinary shares of CD Company at P155 per share, incurring P900 in broker's commission and taxes. On December 31, 2022, the market values of the ordinary shares of AB Company and EF Company were P150 and P153 per share, respectively.
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