n January 2, 2010, Megan Company declared and distributed its only investment in equity securities as dividend. At the time of the declaration, the securities has a carrying value of P500,000 and a related unrealized loss of P100,000. By what amount sh
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- On January 1, 2001, X.Co purchased marketable equity securities at its market value of P5,000,000, while the company also paid commission, taxes and other transaction costs amounting to P200,000. The securities had the following market value on the these dates: December 31, 2001 4,700,000 December 31, 2002 5,300,000 No securities were sold during 2001 and 2002. What amount of unrealized gain or loss should be reported in the 2002 income statement if the securities were held for trading?On January 11, 2021, BERRY Company declared and distributed itstrading securities as dividend. At the time of declaration, the investmenthas a carrying value of ₱500,000 and a related unrealized loss of₱100,000. By what amount should BERRY Company charge its RetainedEarnings as a result of the dividend declaration? Choices: ₱ 400,000₱ 600,000₱ 500,000₱ 100,000On January 1, 2018 Alexes Company purchased market marketable equity securities to be held as trading for 5 000 000. The entity also paid transaction cost amounting to P 200 000. The securities had a market value of 5 500 000 on December 31, 2018 and the transaction cost that would be incurred on sale is estimated at 100 000. No securities were sold in 2018. What amount of unrealized gain or loss on these securities should be reported in the 2018 income statement?
- On its December 31, 2020, balance sheet, Trump Company reported its investment in equity securities, which had cost $600,000, at fair value of $560, 000. At December 31, 2021, the fair value of the securities was $585, 000. What should Trump report on its 2021 income statement as a result of the increase in fair value of the investments in 2021? a. 50. b. Unrealized loss of $15,000. c. Realized gain of $25, 000. d. Unrealized gain of $25,000.On its December 31, 2024, balance sheet, Sandhill Company reported its investment in equity securities, which cost $690000, at fair value of $618000. At December 31, 2025, the fair value of the securities was $649000. What should Sandhill report on its 2025 income statement as a result of the increase in fair value of the investments in 2025? O Realized gain of $31000 O Unrealized gain of $31000 O Unrealized loss of $41000 O $0On January 5, 2021, Milk Tea Company purchased equity securities for P2,500,000. The company also paid transaction costs amounting to P43,000 and classified the investments at fair value through other comprehensive income. The fair values of the equity securities were P2,600,000 and P2,400,000 on December 31, 2021 and December 31, 2022, respectively. What amount of unrealized gain or (loss) should be reported in the statement of comprehensive income for the year ended December 31, 2022?
- During 2022, Merry Co. purchased the following shares which it classified as FVPL investment: Shares No. of Shares Cost per share at the time of purchase Fair value per share on December 31, 2022 A 1,000 P100 P80 B 5,000 P20 P25 C 10,000 P4 P5 How much unrealized gain or loss will be recognized in the Profit or Loss Statement for these investments on December 31, 2022?On its December 31, 2021, statement of financial position, Apollo Co. reported its investment in equity securities at fair value through other comprehensive income, which had cost P600,000, at fair value of P550,000. At December 31, 2022, the fair value of the securities was P585,000. What should Apollo report on its 2022 income statement as a result of the increase in fair value of the investments in 2022? Unrealized loss of P15,000. O Unrealized gain of P35,000. Realized gain of P35,000. О РО.Assume these are the only securities Martin owns and that the company accounts for them as trading securities. How will changes in the prices of the securities affect net income? What would the effect on net income be if the Nichols Inc. securities were worth $463,000 at year-end (instead of $558,000)
- On March 31, 2018, Chow Brothers, Inc., bought 10% of KT Manufacturing’s capital stock for $50 million. KT’snet income for the year ended December 31, 2018, was $80 million. The fair value of the shares held by Chow was$35 million at December 31, 2018. KT did not declare or pay a dividend during 2018.Required:1. Prepare all appropriate journal entries related to the investment during 2018.2. Assume that Chow sold the stock on January 20, 2019 for $30 million. Prepare the journal entry Sanbornwould use to record the sale.- Assuming no other transactions are noted regarding these financial assets at fair value through profit or loss, what is the amount of unrealized gain/loss reported in the 2021 income statement relating to these securities? A. P29,000 loss B. P20,000 loss C. P29,000 gain D. P20,000 gain - What is the gain on sale reported in A Company's 2022 income statement? A. P38,000 B. P18,000 C. P9,000 D. P0 - Assuming that the securities held by A Company are classified as at fair value through other comprehensive income, what is the gain on sale reported in A Company's 2021 income statement? A. P38,000 B. P18,000 C. P9,000 D. P0On January 1, 2015, Jessica Company acquired a nontrading equity investment for P5,000,000 irrevocably designated at FVOCI. On December 31, 2015, the market value of the investment was P4,000,000. On December 31, 2016, the issuer of the equity instrument was in severe financial difficulty and the fair value of the equity investment had fallen to P1,500,000. The decline is judged to be nontemporary. What amount of cumulative loss should be reported in the statement of changes in equity for 2016 as component of OCI?