On January 1, 2019, Pacita Corp. purchased marketable 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. Because the securities were acquired not for immediate trading, Pacita exercise its option to take the change in fair value through other comprehensive income. The securities had the following fair values at December 31, 2019 and 2020 respectively: P1,750,000 and P2,100,000. No securities were sold during 2019 or 2020. What amount of unrealized gain or loss should be reported in the December 31, 2020 statement of financial position as a component of shareholders' equity? (A) P50,000 cumulative unrealized gain (B P200,000 cumulative unrealized gain P250,000 cumulative unrealized loss D P100,000 cumulative unrealized gain

On January 1, 2019, Pacita Corp. purchased marketable 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. Because the securities were acquired not for immediate trading, Pacita exercise its option to take the change in fair value through other comprehensive income. The securities had the following fair values at December 31, 2019 and 2020 respectively: P1,750,000 and P2,100,000. No securities were sold during 2019 or 2020. What amount of unrealized gain or loss should be reported in the December 31, 2020 statement of financial position as a component of shareholders' equity? (A) P50,000 cumulative unrealized gain (B P200,000 cumulative unrealized gain P250,000 cumulative unrealized loss D P100,000 cumulative unrealized gain

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Question

On January 1, 2019, Pacita Corp. purchased marketable 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. Because the securities were
acquired not for immediate trading, Pacita exercise its option to take the change in fair value through other
comprehensive income. The securities had the following fair values at December 31, 2019 and 2020 respectively:
P1,750,000 and P2,100,000. No securities were sold during 2019 or 2020. What amount of unrealized gain or loss should
be reported in the December 31, 2020 statement of financial position as a component of shareholders' equity?
(A) P50,000 cumulative unrealized gain
(B P200,000 cumulative unrealized gain
P250,000 cumulative unrealized loss
(D P100,000 cumulative unrealized gain

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