On January 1, 2020, the Balading Corporation purchased marketable equity securities 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, Balading exercised its option to take the change in fair value through other comprehensive income. The securities had the following fair values at December 31, 2020 and 2021, respectively: P1,750,000 and P2,100,000. No securities were sold during 2020 and 2021. What amount of unrealized gain or loss should be reported in the December 31, 2021 statement of financial position as a component of shareholders' equity? (A P250,000 cumulative unrealized loss B P200,000 cumulative unrealized loss P100,000 cumulative unrealized gain

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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On January 1, 2020, the Balading Corporation purchased marketable equity securities 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, Balading exercised its option to take the change in fair value through other comprehensive income.
The securities had the following fair values at December 31, 2020 and 2021, respectively: P1,750,000 and P2,100,000.
No securities were sold during 2020 and 2021.
What amount of unrealized gain or loss should be reported in the December 31, 2021 statement of financial position as a
component of shareholders' equity?
A P250,000 cumulative unrealized loss
B) P200,000 cumulative unrealized loss
P100,000 cumulative unrealized gain
D P50,000 cumulative unrealized gain
Transcribed Image Text:On January 1, 2020, the Balading Corporation purchased marketable equity securities 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, Balading exercised its option to take the change in fair value through other comprehensive income. The securities had the following fair values at December 31, 2020 and 2021, respectively: P1,750,000 and P2,100,000. No securities were sold during 2020 and 2021. What amount of unrealized gain or loss should be reported in the December 31, 2021 statement of financial position as a component of shareholders' equity? A P250,000 cumulative unrealized loss B) P200,000 cumulative unrealized loss P100,000 cumulative unrealized gain D P50,000 cumulative unrealized gain
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