On January 1, 2020, Alexis Company purchased marketable equity securities to be held as "trading" for P5,000,000. The entity also paid commission, taxes and other transaction costs amounting to P200,000. The securities had a market value of P5,500,000 on December 31, 2020 and the transaction costs that would be incurred on sale are estimated at P100,000. No securities were sold during 2020. What amount of unrealized gain or loss on these securities should reported in the 2020 income statement? a.P500,000 unrealized loss b.P400,000 unrealized gain C.P500,000 unrealizeci gain d.P400,000 unrealized loss
On January 1, 2020, Alexis Company purchased marketable equity securities to be held as "trading" for P5,000,000. The entity also paid commission, taxes and other transaction costs amounting to P200,000. The securities had a market value of P5,500,000 on December 31, 2020 and the transaction costs that would be incurred on sale are estimated at P100,000. No securities were sold during 2020. What amount of unrealized gain or loss on these securities should reported in the 2020 income statement? a.P500,000 unrealized loss b.P400,000 unrealized gain C.P500,000 unrealizeci gain d.P400,000 unrealized loss
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter13: Investments And Long-term Receivables
Section: Chapter Questions
Problem 2MC: During 2021, Anthony Company purchased debt securities as a long-term investment and classified them...
Related questions
Question
100%
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning