YA Inc. wishes to transfer its equity investments initially classified as fair value through other comprehensive income to profit or loss. On December 31, 2020, the fair value of the investment is P100,000 while on January 1, 2021 which is the date of reclassification, the fair value is P110,000. Assuming that the entity will make the reclassification, how much is the gain to be reported on January 1, 2021 related to the reclassification? A.PO B.P110,000 C.P100,000 D.P10,000

Q: An entity acquired an investment in equity instrument for P800,000 on 31 March 2020. The direct…

A: Cost of equity instrument = P800,000 + P140,000 = P940,000 Fair value = P1,100,000

Q: Company acquired equity securities during the year 2018 and designated as fair value to other…

A: Investment in shares is the investment which is done by the investor to get gain by the increase in…

Q: Determine the unrealized gain/loss on December 31, 2021?               Determine the net gain/loss…

A: 1.Unrealized profit or losses refer to profits or losses that have not occurred in actual but has…

Q: Of $50,00 investment is going to be accounted for at fair value through other comprehensive income…

A: Journal entries…

Q: instruments in exchange for 75% interest in Titan Co. On acquisition date, Turtle Co. elected to…

A: Consolidated equity refers to the aggregate of the stakeholder's equity of the parent company as…

Q: 2021 annual report to shareholders, Health Foods, Inc., disclosed the following information about…

A: Gains or losses are terms used in accounting which means realized when the stock or any investment…

Q: On January 1, 2019, XYZ Co. issued equity instruments in exchange for 75% interest in  ABC Co. On…

A: The question is based on the concept of Consolidated Financial Statements. As per the Bartleby…

Q: On January 1, 2021, Bass Co. issued equity instruments in exchange for 75% interest in Guitar Co. On…

A: Holding & Subsidiary Company - When an enterprise controls another enterprise. In that case, the…

Q: Difficult Company acquiredan equity instrument for P3,600,000 on March 31, 2020 to be measured at…

A: Given that: Acquisition costs = P3,600,000 Direct costs incurred = P630,000 At the end, Fair value…

Q: On January 1, 2019, Pat Archi Inc purchased marketable equity securities for P2,000,000. The…

A: The question is related to Financial Assets. It is given that the securities do not qualify as…

Q: 4. An entity acquired an investment in equity instrument for P800,000 on 31 March 2020. The direct…

A: When fair value of the instruments is more the acquisition cost, then gain on the values of…

Q: On October 31, 2020, Dylan Company declared its non-current asset (land) as a dividend with a…

A: Property Dividend A property dividend is a type of dividend that replaces cash or stock dividends by…

Q: On January 1, 2021, Jeremiah Company purchased trading equity investments which are irrevocably…

A: Unrealized profit or losses refer to profits or losses that have not occurred in actual but has…

Q: An entity acquired an investment in equity instrument for P800,000 on 31 March 2020. The direct…

A: Acquisition cost on Mar 31,2020 = Purchase price + direct acquisition costs = 800,000 + 140,000 =…

Q: During 2021, Manu Company purchased shares of stock classified as short-term investment to be…

A: Unrealized gain or loss is the increase or decrease in the value of an asset that is still to be…

Q: An entity acquired an investment in equity instrument for P800,000 on 31 March 2020. The direct…

A: Unrealized Gain: It is a potential gain  which is earned from the investment when the company earns…

Q: Bramble Corporation owns shares of Klank Ltd that are classified as part of Bramble's trading…

A: Property dividend refers to the earnings distributed to the shareholders of the company in the form…

Q: On July 1, 2020, Santo sold half of its stock in Nino for its fair value of P237,000.  Thereafter,…

A:

Q: On January 1, 2020, the Soondubu Stew Corporation purchased equity securities to be held fo ading…

A: Given, Acquisition cost of securities = P2,000,000 Commission and taxes = P50,000 Fair value of…

Q: On January 1, 2021, Jeremiah Company purchased trading equity investments which are irrevocably…

A: Financial assets are recognized at their historical costs in initial measurement and the difference…

Q: On January 1, 2019, XYZ Co. issued equity instruments in exchange for 75% interest in  ABC Co. On…

A: All amounts are in P.

Q: An entity, with an investment in debt securities carried as FVOCI, deemed its original business…

A: A bond is a debt instrument that is issued by the organization to raise the funds from the investor…

Q: On January 1, 2021, Jeremiah Company purchased trading equity investments which are irrevocably…

A: Income statement is the financial statement that shows income and expenditure. It is also known as…

Q: On January 1, 2020, the Deluxe Corporation purchased equity securities to be held for trading…

A: Given, Acquisition cost of securities = P 2,000,000 Commission and taxes = P 50,000 Fair value of…

Q: . What is the gain on remeasurement to equity to be recognized for 2021? a. 1,500,000 b. 4,500,000…

A: Therefore, option (a) is the correct answer.

Q: On its December 31, 2020, balance sheet, Cullumber Company reported its investment in equity…

A: Investment in equity securities means that one company is holding the share of another company. Fair…

Q: Splendid Company purchased equity securties during 2020 to be heid as investments. The cost and…

A: Financial Management: Financial management comprises of two words i.e. Finance and management.…

Q: On January 1, 2021, an entity purchased marketable equity securities for P5,000,000. The equity…

A:

Q: An entity acquired an investment in equity instrument for P800,000 on 31 March 2020. The direct…

A: Company means the form of business where management is separately from owner and have perpetual…

Q: At the beginning of the current year, Jason Company acquired non-trading equity instrument for…

A: Solution: Cost of equity instruments = P4,000,000 + P700,000 = P4,700,000 Fair value of instrument…

Q: An entity acquired an investment in equity instrument for P800,000 on 31 March 2020. The direct…

A: As per FVTOCI the transaction cost incurred are to added to cost of investment only on initial…

Q: On January 1, 2019, Turtle Co. issued equity instruments in exchange for 75% interest in Titan Co.…

A: The consolidated financial statement represents the consolidation of the financial statement of a…

Q: Strawberry Corp. has various equity investment at fair value through profit or loss transactions…

A: Lets understand the basics. Investments are generally record through three methods which are, (1)…

Q: OFIA had investments in equity securities costing P1,000,000 that were classifies as investment in…

A: When Investments are reclassified at fair value through profit and loss which were earlier…

Q: On January 1, 2019, Pacita Corp. purchased marketable equity securities to be held for trading…

A: For measurements under FVTOCI the transaction cost will be debited to profit or loss account…

Q: On July 1, 2021, PASSETS acquired all the net assets of SIABS at its underlying book value, which…

A: Amount paid for registering the newly issued shares: P150,000 Amount paid for printing of the stock…

Q: Wickum Corporation reports under IFRS, and recognized a $500,000 other-than-temporary impairment of…

A: International Financial Reporting Standards (IFRS):   International Financial Reporting Standards is…

Q: On January 1, 2019, FFF Company acquired a 10% interest in an investee for P3,000,000. The…

A: Carrying amount: The carrying amount is the recorded cost of an asset, net of any accumulated…

Q: Corporation’s Retained Earnings at December 31, 2021 amounted to P2,000,000.  On that date, the…

A: The retained earnings are decreased with declaration of dividend to shareholders. The dividend can…

Q: 5. In 2020, the entity purchased the following equity securities for the purpose of selling them in…

A: Equity Securities  An instrument that represents a claim on a corporation's assets and profits and…

Q: what gain would be recognized in the financial statements for the year ended 31 December 2020?

A: The gain to be recognized in the financial statements is based on purchase value of investment and…

Q: On January 1, 2019, Turtle Co. issued equity instruments in exchange for 75% interest in Titan Co.…

A: Consolidated Retained Earnings: CRE stands for "consolidated retained earnings," and it reflects the…

Q: Indigo Corporation owns shares of Raccoon Company that are classified as part of Indigo's trading…

A: Change  in fair value  is recognized as  unrealized gain or loss

Q: On January 1, 2020, the Balading Corporation purchased marketable equity securities for P2,000,000.…

A: Solution: Total cost of equity securities = P2,000,000 + P50,000 = P2,050,000 Market value of equity…

Q: On January 1, 2019, FFF Company acquired a 10% interest in an investee for P3,000,000. The…

A: Solution- Particulars Amount $ Existing 10% Interest Remeasured at fair value 4500000 New 15%…

Q: On July 1, 2021, PASSETS acquired all the net assets of SIABS at its underlying book value, which…

A: Acqusition cost in Business combination Acqusition cost which are incurred at the time of the…

Q: income statement

A: Investments in Equity shall be classified as Fair Value always. The question may arise as to whether…

Q: MEME Corporation’s Retained Earnings at December 31, 2021 amounted to P2,000,000.  On that date, the…

A: Dividend is the part or share of profits which is divided among the shareholders of the company. For…

Q: On January 1, 2019, FFF Company acquired a 10% interest in an investee for P3,000,000. The…

A: Solution- Particular Amount $ Fair value of 10% Interest 4500000 Historical cost 3000000…

Q: On January 1, 2020, the Gim Corporation purchased equity securities for P2,000,000. The company also…

A: Unrealized Gain / (Loss) = Fair Value - Cost of Investment