How much is the unrealized gain (loss) recognized in other comprehensiveincome on December 31, 20x1?Karen Co. purchased the following equity securities on January 1, 20x1 for a total amount ofP360,000.CostAlaska Co. preference sharesP200,000160,000Valdez Co. ordinary sharesTotalsP360,000The shares did not qualify for recognition as held for trading, thus they were classified asinvestment in equity securities measured at fair value through other comprehensive income.On December 31, 20x1, the portfolio of Karen Co. comprised the following.Fair value - 12/31/x1Alaska Co. preference sharesP240,00060,000Valdez Co. ordinary sharesTotalP300,000On December 31, 20x2, the portfolio of Karen Co. comprised the following:Fair value-12/31/x2Alaska Co. preference sharesP220,000Valdez Co. ordinary shares180,000TotalP400,000On February 2, 20x3, all of the Alaska Co. preference shares were sold for P160,000 net of transactioncosts.60,000100,000O (60,000)

As per IFRS If investment in equity shares other than those held for trading is measured at Fair…

ncome on December 31, 20x1? Karen Co. purchased the following equity securities on January 1, 2 P360,000. Cost P200,000 Alaska Co. preference shares Valdez Co. ordinary shares Totals 160,000 P360,000 The shares did not qualify for recognition as held for trading, thu investment in equity securities measured at fair value through other comp

ncome on December 31, 20x1? Karen Co. purchased the following equity securities on January 1, 2 P360,000. Cost P200,000 Alaska Co. preference shares Valdez Co. ordinary shares Totals 160,000 P360,000 The shares did not qualify for recognition as held for trading, thu investment in equity securities measured at fair value through other comp

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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Loreal-American Corporation purchased several marketable securities during 2021. At December 31, 2021, the company had the investments in bonds listed below. None was held at the last reporting date, December 31, 2020, and all are considered securities available-for-sale. Cost Fair Value Unrealized HoldingGain (Loss) Short term: Blair, Inc. $ 480,000 $ 405,000 $ (75,000 ) ANC Corporation 450,000 480,000 30,000 Totals $ 930,000 $ 885,000 $ (45,000 ) Long term: Drake Corporation $ 480,000 $ 560,000 $ 80,000 Aaron Industries 720,000 660,000 (60,000 ) Totals $ 1,200,000 $ 1,220,000 $ 20,000 Required:1. Prepare appropriate adjusting entry at December 31, 2021.2. What amount would be reported in the income statement at December 31, 2021, as a result of the adjusting entry?
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Lover Company reported the following non-trading equity securities held as FA at FVOCI in its December 31, 2015 statement of financial position: Broken Company ordinary shares, at cost 2,000,000 Allowance for market adjustment for unrealized loss (300,000) Market value 1,700,000 On December 31, 2016, the market value of Lover’s investment is P1,950,000. As a result of the change in market value, Lover’s statement of comprehensive income for 2016 should report What is the gain on sale in 2017 if the securities are sold at 2,500,000?
on 1/1/2019 X CO acquired 80% of Y common stock for $150,000 in the same day the Y net assets was $ 140,000 ,in the same date the fair value of assets and liabilities were equal .year ended 31/12/2019 Y reported income $50,000 , declared dividend $30,000 , X using equity methods what is non- controlling interest balance on 1/1/2019 Select one: a. 37,500 b. 10,000 c. 47,500 d. 50,000
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