- How much is the unrealized gain on equity investment reported in the 2022 other comprehensive income?A. P2,230,000B. P1,880,000C. P950,000D. P350,000 X. On January 1, 2020, Allyssa Company acquired 30% of the voting share capital of Ruby Company for P5,000,000which was equal to the book value of interest acquired. The investee reported net profit of P4,000,000 for 2020 andP6,000,000 for 2021 but paid no dividends during the two-year period. On July 1, 2022, Allyssa Company sold one-halfof the investment for net proceeds of P4,480,000. The fair value of the remaining investment was P4,500,000 on July1, 2022 and P4,850,000 on December 31 2022. The remaining investment is to be held at fair value through othercomprehensive income.

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How much is the unrealized gain on equity investment reported in the 2022 other comprehensive income?

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

- How much is the unrealized gain on equity investment reported in the 2022 other comprehensive income?

A. P2,230,000

B. P1,880,000

C. P950,000

D. P350,000

X. On January 1, 2020, Allyssa Company acquired 30% of the voting share capital of Ruby Company for P5,000,000
which was equal to the book value of interest acquired. The investee reported net profit of P4,000,000 for 2020 and
P6,000,000 for 2021 but paid no dividends during the two-year period. On July 1, 2022, Allyssa Company sold one-half
of the investment for net proceeds of P4,480,000. The fair value of the remaining investment was P4,500,000 on July
1, 2022 and P4,850,000 on December 31 2022. The remaining investment is to be held at fair value through other
comprehensive income.

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