Daring 2018, Mark Company acquired 11,000 ordinary shares of Raian Company's 200,000 shares that are widely distributed. The shares are not intended to be traded in the near term and Mark Company does not have the ability to exercise significant influence over the operating and financial policies of Raian Company. The market value of these shares had been changing for the last three years as follows: December 31, 2018- P235,000; December 31, 2019-P241,000; December 31, 2020-P222,000 These shares were acquired in 2018 for P231,000 plus broker's commission of P2,310. 1. How much is the unrealized loss on the equity Investment recognized in profit or loss of 2020? a. P19,000 b. P11,310 c. P9,000 d. P0 2. At how much will the equity investments be reported in Mark Company's December 31,2020 statement of financial position? a. P233,310 b. P222,000 c. P241,000 d. P235,000
Daring 2018, Mark Company acquired 11,000 ordinary shares of Raian Company's 200,000 shares that are widely distributed. The shares are not intended to be traded in the near term and Mark Company does not have the ability to exercise significant influence over the operating and financial policies of Raian Company. The market value of these shares had been changing for the last three years as follows: December 31, 2018- P235,000; December 31, 2019-P241,000; December 31, 2020-P222,000 These shares were acquired in 2018 for P231,000 plus broker's commission of P2,310. 1. How much is the unrealized loss on the equity Investment recognized in profit or loss of 2020? a. P19,000 b. P11,310 c. P9,000 d. P0 2. At how much will the equity investments be reported in Mark Company's December 31,2020 statement of financial position? a. P233,310 b. P222,000 c. P241,000 d. P235,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Daring 2018, Mark Company acquired 11,000 ordinary shares of Raian Company's 200,000
shares that are widely distributed. The shares are not intended to be traded in the near term and Mark Company does not have the ability to exercise significant influence over the operating and financial policies of Raian Company. The market value of these shares had been changing for the last three years as follows: December 31, 2018- P235,000; December 31, 2019-P241,000; December 31, 2020-P222,000
These shares were acquired in 2018 for P231,000 plus broker's commission of P2,310.
1. How much is the unrealized loss on the equity Investment recognized in profit or loss of 2020?
shares that are widely distributed. The shares are not intended to be traded in the near term and Mark Company does not have the ability to exercise significant influence over the operating and financial policies of Raian Company. The market value of these shares had been changing for the last three years as follows: December 31, 2018- P235,000; December 31, 2019-P241,000; December 31, 2020-P222,000
These shares were acquired in 2018 for P231,000 plus broker's commission of P2,310.
1. How much is the unrealized loss on the equity Investment recognized in profit or loss of 2020?
a. P19,000
b. P11,310
c. P9,000
d. P0
2. At how much will the equity investments be reported in Mark Company's December 31,2020 statement of financial position ?
a. P233,310
b. P222,000
c. P241,000
d. P235,000
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