During 2012, Orly company purchased marketable equity securities as short-term investment to be measured at fair value through other comprehensive income. The cost and market value on December 31, 2012 were as follows: Security Cost Market value A 1,000 shares 600,000 700,000 В 10,000 shares 3,400,000 3,100,000 20,000 shares 6,300,000 5,900,000 The entity sold 10,000 shares of B on January 5, 2013 for P300 per share and incurred P100,000 in brokerage commission and taxes. What amount should be reported as loss on sale of equity securities?

During 2012, Orly company purchased marketable equity securities as short-term investment to be measured at fair value through other comprehensive income. The cost and market value on December 31, 2012 were as follows: Security Cost Market value A 1,000 shares 600,000 700,000 В 10,000 shares 3,400,000 3,100,000 20,000 shares 6,300,000 5,900,000 The entity sold 10,000 shares of B on January 5, 2013 for P300 per share and incurred P100,000 in brokerage commission and taxes. What amount should be reported as loss on sale of equity securities?

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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Question

During 2012, Orly company purchased marketable equity securities as short-term
investment to be measured at fair value through other comprehensive income. The cost
and market value on December 31, 2012 were as follows:
Security
Cost
Market value
A
1,000 shares
600,000
700,000
В
10,000 shares
3,400,000
3,100,000
20,000 shares
6,300,000
5,900,000
The entity sold 10,000 shares of B on January 5, 2013 for P300 per share and incurred
P100,000 in brokerage commission and taxes. What amount should be reported as loss
on sale of equity securities?

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