On January 1, 2020, the Pacita Corporation purchased equitysecurities to be held for trading purposes for P2,000,000. Thecompany also paid commission, taxes and other transactioncosts amounting to P50,000. The securities had fair values atDecember 31, 2020 and 2021, respectively: P1,750,000 andP2,100,000.No securities were sold during 2021.What amount of unrealized gain or loss should be reported inthe 2021 profit or loss section of the statement of comprehensiveincome?P200,000 lossP250,000 lossP350,000 gainP100,000 gainа.b.с.d.

Other Comprehensive Income (OCI) OCI is prepared to recognize the income/expense/gain/loss which is…

Ɔn January 1, 2020, the securities to be held for trading purposes for P2,000,0 company also paid commission, taxes and other tr costs amounting to P50,000. The securities had fair December 31, 2020 and 2021, respectively: P1,750 P2,100,000.

Ɔn January 1, 2020, the securities to be held for trading purposes for P2,000,0 company also paid commission, taxes and other tr costs amounting to P50,000. The securities had fair December 31, 2020 and 2021, respectively: P1,750 P2,100,000.

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

100%

On January 1, 2020, the Pacita Corporation purchased equity
securities to be held for trading purposes for P2,000,000. The
company also paid commission, taxes and other transaction
costs amounting to P50,000. The securities had fair values at
December 31, 2020 and 2021, respectively: P1,750,000 and
P2,100,000.
No securities were sold during 2021.
What amount of unrealized gain or loss should be reported in
the 2021 profit or loss section of the statement of comprehensive
income?
P200,000 loss
P250,000 loss
P350,000 gain
P100,000 gain
а.
b.
с.
d.

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