Marcus Company made the following transactions in the ordinary shares of Cato Company designated as a financial asset at fair value through profit or loss: July 16, 2018- Purchased 10,000 shares at P45 per share. June 28, 2019 - Sold 2,000 shares for P51 per share. May 18, 2020- Sold 2,500 shares for P33 per share. The end-of-year market prices for the shares were as follows: December 31, 2018 - P47 per share December 31, 2019 - P39 per share December 31, 2020 - P31 per share 1. How much should be recognized in 2020 profit or loss as a result of the fair value changes? (use negative sign if your answer is a loss) 2. How much should be recognized as realized gain on sale for the year ended December 31, 2020? (use negative sign if your answer is a loss) 1
Marcus Company made the following transactions in the ordinary shares of Cato Company designated as a financial asset at fair value through profit or loss: July 16, 2018- Purchased 10,000 shares at P45 per share. June 28, 2019 - Sold 2,000 shares for P51 per share. May 18, 2020- Sold 2,500 shares for P33 per share. The end-of-year market prices for the shares were as follows: December 31, 2018 - P47 per share December 31, 2019 - P39 per share December 31, 2020 - P31 per share 1. How much should be recognized in 2020 profit or loss as a result of the fair value changes? (use negative sign if your answer is a loss) 2. How much should be recognized as realized gain on sale for the year ended December 31, 2020? (use negative sign if your answer is a loss) 1
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Marcus Company made the following transactions in the ordinary shares
of Cato Company designated as a financial asset at fair value through
profit or loss:
July 16, 2018- Purchased 10,000 shares at P45 per share.
nces
June 28, 2019 - Sold 2,000 shares for P51 per share.
ations
May 18, 2020 - Sold 2,500 shares for P33 per share.
The end-of-year market prices for the shares were as follows:
December 31, 2018 - P47 per share
December 31, 2019 P39 per share
December 31, 2020 P31 per share
1. How much should be recognized in 2020 profit or loss as a result of the
fair value changes? (use negative sign if your answer is a loss)
2. How much should be recognized as realized gain on sale for the year
ended December 31, 2020? (use negative sign if your answer is a loss)
1
2)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F77af85fe-5338-4656-bdd1-34d495111eaa%2F547f4414-406c-4898-be9b-8daca085682f%2Fmzql4k_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Marcus Company made the following transactions in the ordinary shares
of Cato Company designated as a financial asset at fair value through
profit or loss:
July 16, 2018- Purchased 10,000 shares at P45 per share.
nces
June 28, 2019 - Sold 2,000 shares for P51 per share.
ations
May 18, 2020 - Sold 2,500 shares for P33 per share.
The end-of-year market prices for the shares were as follows:
December 31, 2018 - P47 per share
December 31, 2019 P39 per share
December 31, 2020 P31 per share
1. How much should be recognized in 2020 profit or loss as a result of the
fair value changes? (use negative sign if your answer is a loss)
2. How much should be recognized as realized gain on sale for the year
ended December 31, 2020? (use negative sign if your answer is a loss)
1
2)
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