39. D On January 1, 2019, Caraga Company purchased equity securities to be held as financialassets measured at fair value through other comprehensive income.Market – 12/31/193,200,0003,500,0004,600,000Market 12/31/2020Security RSecurity SSecurity TCost3,000,0004,000,0005,000,0003,700,0004,700,000On January 31, 2020, the entity sold Security R for P3,500,000.What amount should be recognized directly in retained earnings of as a result of the sale ofinvestment in 2020?a. 500,000b. 300,000c. 200,000d. 0

At every accounting period, all equity securities are revalued to find out their market value. Then…

39. D On January 1, 2019, Caraga Company purchased equity securities to be held as financial assets measured at fair value through other comprehensive income. Market – 12/31/19 3,200,000 3,500,000 4,600,000 Cost Market 12/31/2020 Security R Security S Security T 3,000,000 4,000,000 5,000,000 3,700,000 4,700,000 On January 31, 2020, the entity sold Security R for P3,500,000. What amount should be recognized directly in retained earnings of as a result of the sale of investment in 2020? a. 500,000 b. 300,000 c. 200,000 d. 0

39. D On January 1, 2019, Caraga Company purchased equity securities to be held as financial assets measured at fair value through other comprehensive income. Market – 12/31/19 3,200,000 3,500,000 4,600,000 Cost Market 12/31/2020 Security R Security S Security T 3,000,000 4,000,000 5,000,000 3,700,000 4,700,000 On January 31, 2020, the entity sold Security R for P3,500,000. What amount should be recognized directly in retained earnings of as a result of the sale of investment in 2020? a. 500,000 b. 300,000 c. 200,000 d. 0

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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