ition cost of all the securities in its portfolio during 2019 was P532,000. At December 31, 2019 and December 31, 2020, the market value of these equity investments were P541,000 and P512,000, respectively. In 2021, all of these securities were sold for P550,000. Assuming that the securities held by A Company are classified as at fair value through other comprehensive income, what is the gain on sale reported in A Company's 2020 Income statement?
ition cost of all the securities in its portfolio during 2019 was P532,000. At December 31, 2019 and December 31, 2020, the market value of these equity investments were P541,000 and P512,000, respectively. In 2021, all of these securities were sold for P550,000. Assuming that the securities held by A Company are classified as at fair value through other comprehensive income, what is the gain on sale reported in A Company's 2020 Income statement?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
A Company had various equity investments at fair value through profit or loss transactions during 2019 and 2020. The acquisition cost of all the securities in its portfolio during 2019 was P532,000. At December 31, 2019 and December 31, 2020, the market value of these equity investments were P541,000 and P512,000, respectively. In 2021, all of these securities were sold for P550,000.
Assuming that the securities held by A Company are classified as at fair value through other comprehensive income, what is the gain on sale reported in A Company's 2020 Income statement?
a. P38,000
b. P18,000
c. P9,000
d. P0
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