Red Company had the following portfolio of equity securities to other comprehensive income at December 31, 2018: Security Cost Market Value A 400,000 390,000 B 700,000 660,000 Total 1,100,000 1,050,000 If Red Company would have to sell the securities transaction cost will be incurred as follows; P20,000 and P30,000 for security A and B, respectively. In Red's December 31, 2018 statement of financial position, how much should be reported as the carrying value of the portfolio? a. 1,050,000 b. 1,060,000 c. 1,100,000 d. 1,110,000
Red Company had the following portfolio of equity securities to other comprehensive income at December 31, 2018: Security Cost Market Value A 400,000 390,000 B 700,000 660,000 Total 1,100,000 1,050,000 If Red Company would have to sell the securities transaction cost will be incurred as follows; P20,000 and P30,000 for security A and B, respectively. In Red's December 31, 2018 statement of financial position, how much should be reported as the carrying value of the portfolio? a. 1,050,000 b. 1,060,000 c. 1,100,000 d. 1,110,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Red Company had the following portfolio of equity securities to other comprehensive income at December 31, 2018:
Security Cost Market Value
A 400,000 390,000
B 700,000 660,000
Total 1,100,000 1,050,000
If Red Company would have to sell the securities transaction cost will be incurred as follows; P20,000 and P30,000 for security A and B, respectively.
In Red's December 31, 2018statement of financial position , how much should be reported as the carrying value of the portfolio?
Security Cost Market Value
A 400,000 390,000
B 700,000 660,000
Total 1,100,000 1,050,000
If Red Company would have to sell the securities transaction cost will be incurred as follows; P20,000 and P30,000 for security A and B, respectively.
In Red's December 31, 2018
a. 1,050,000
b. 1,060,000
c. 1,100,000
d. 1,110,000
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