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On March 1, ABC Inc acquired equity securities at the market value of P1,200,000. Broker fees of P50,000 were incurred in relation to the purchase. On December 31, the securities had a market value of P1,500,000. Required: a. Determine the amount at which the financial asset should be recognized initially. b. Prepare adjusting entry, if any, on December 31. Assumptions: The securities are classified as 1. At fair value through profit or loss 2. At fair value through other comprehensive income

On March 1, ABC Inc acquired equity securities at the market value of P1,200,000. Broker fees of P50,000 were incurred in relation to the purchase. On December 31, the securities had a market value of P1,500,000. Required: a. Determine the amount at which the financial asset should be recognized initially. b. Prepare adjusting entry, if any, on December 31. Assumptions: The securities are classified as 1. At fair value through profit or loss 2. At fair value through other comprehensive income

FINANCIAL ACCOUNTING
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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On March 1, ABC Inc acquired equity securities at the market value of P1,200,000. Broker fees of P50,000 were incurred in relation to the purchase. On December 31, the securities had a market value of P1,500,000. Required: a. Determine the amount at which the financial asset should be recognized initially. b. Prepare adjusting entry, if any, on December 31. Assumptions: The securities are classified as 1. At fair value through profit or loss 2. At fair value through other comprehensive income
Transcribed Image Text:On March 1, ABC Inc acquired equity securities at the market value of P1,200,000. Broker fees of P50,000 were incurred in relation to the purchase. On December 31, the securities had a market value of P1,500,000. Required: a. Determine the amount at which the financial asset should be recognized initially. b. Prepare adjusting entry, if any, on December 31. Assumptions: The securities are classified as 1. At fair value through profit or loss 2. At fair value through other comprehensive income
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