An entity buys and sells securities expecting to earn profits on short-term differences in price. During 2016, the entity purchased the following trading securities: Security A Fair Value Dec. 31, 2016 225,000 162,000 678,000 Cost B C 195,000 300,000 660,000 Before any adjustments related to these trading securities, the entity had net income of P900,000. What is the entity's net income after making any necessary trading security adjustments? a. 900,000 b. 810,000 c. 762,000 d. 948,000 What would the net income be if the fair value of security B were P285,000? a. 867,000 b. 900,000 c. 885,000 d. 933,000

An entity buys and sells securities expecting to earn profits on short-term differences in price. During 2016, the entity purchased the following trading securities: Security A Fair Value Dec. 31, 2016 225,000 162,000 678,000 Cost B C 195,000 300,000 660,000 Before any adjustments related to these trading securities, the entity had net income of P900,000. What is the entity's net income after making any necessary trading security adjustments? a. 900,000 b. 810,000 c. 762,000 d. 948,000 What would the net income be if the fair value of security B were P285,000? a. 867,000 b. 900,000 c. 885,000 d. 933,000

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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TOPICS: INVESTMENTS AND DERIVATIVES Correction: amor=A; marie=B (as stipulated in the problem, as image shown)