4. Illusion Company acquired equity instrument for P4,000,000 on March 31, 2013 to be measured at fair value through other comprehensive income. The direct acquisition costs incurred amounted to P700,000. On December 31, 2013, the fair value of the instrument was P5,500,000 and the transaction costs that would be incurred on the sale of the investment were estimated at P600,000. What amount of unrealized gain should be recognized in other comprehensive income for the year ended December 31, 2013? a. 200,000 b. 900,000 c. 800,000 d.

4. Illusion Company acquired equity instrument for P4,000,000 on March 31, 2013 to be measured at fair value through other comprehensive income. The direct acquisition costs incurred amounted to P700,000. On December 31, 2013, the fair value of the instrument was P5,500,000 and the transaction costs that would be incurred on the sale of the investment were estimated at P600,000. What amount of unrealized gain should be recognized in other comprehensive income for the year ended December 31, 2013? a. 200,000 b. 900,000 c. 800,000 d.

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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The solution must be under the GAAP standards
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