On January 1, 2016, A Company purchased the following securities: Market Market Value Value Security A 12/31/18 12/31/18 Cost 3 000 000 3 200 000 B 4 000 000 3 500 000 3 700 000 C 5 000 000 4 600 000 4 700 000 All securities are measured at fair value through other comprehensive income except for Security Marie which is a trading security. On January 31, 2019, the entity sold security Amor for P 3 500 000. 1. What is the amount of unrealized gain or loss to be recognized in profit or loss in 12/31/18? 2. What is the amount of unrealized gain or loss to be recognized in other comprehensive income in 12/31/18? 3. What amount should be recognized directly in retained earnings as a result of the sale of investment in 2019?

On January 1, 2016, A Company purchased the following securities: Market Market Value Value Security A 12/31/18 12/31/18 Cost 3 000 000 3 200 000 B 4 000 000 3 500 000 3 700 000 C 5 000 000 4 600 000 4 700 000 All securities are measured at fair value through other comprehensive income except for Security Marie which is a trading security. On January 31, 2019, the entity sold security Amor for P 3 500 000. 1. What is the amount of unrealized gain or loss to be recognized in profit or loss in 12/31/18? 2. What is the amount of unrealized gain or loss to be recognized in other comprehensive income in 12/31/18? 3. What amount should be recognized directly in retained earnings as a result of the sale of investment in 2019?

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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