L. A company had various equity investments at fair value through profit or loss transactions during 2020 and 2021. The acquisition cost of all the securities in its portfolio during 2020 was P532,000. At December 31, 2020 and December 31, 2021, the market values of these equity investments were P541,000 and P512,000, respectively. In 2022, all of these securities were sold for P550,000.
L. A company had various equity investments at fair value through profit or loss transactions during 2020 and 2021. The acquisition cost of all the securities in its portfolio during 2020 was P532,000. At December 31, 2020 and December 31, 2021, the market values of these equity investments were P541,000 and P512,000, respectively. In 2022, all of these securities were sold for P550,000.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
- Assuming no other transactions are noted regarding these financial assets at fair value through profit or loss,
what is the amount of unrealized gain/loss reported in the 2021 income statement relating to these securities?
A. P29,000 loss
B. P20,000 loss
C. P29,000 gain
D. P20,000 gain
- What is the gain on sale reported in A Company's 2022 income statement?
A. P38,000
B. P18,000
C. P9,000
D. P0
- 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 2021 income statement?
A. P38,000
B. P18,000
C. P9,000
D. P0
Transcribed Image Text:L.
A company had various equity investments at fair value through profit or loss transactions during 2020 and 2021. The
acquisition cost of all the securities in its portfolio during 2020 was P532,000. At December 31, 2020 and December
31, 2021, the market values of these equity investments were P541,000 and P512,000, respectively. In 2022, all of
these securities were sold for P550,000.
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