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Silahis Trading made investments in non-trading equity securities. The cumulative “Holding Gain or Loss" account has a debit balance of P12,900 at December 31, Year 1. An analysis of the investments on December 31, Year 1 showed the following: No. of Shares or Face Value 600 shares 225 shares Fair Value Asia Textile ordinary S-Mart, Inc. ordinary RJ Company ordinary Cost P307,500 P270,000 76,500 269,500 P653,500 P640,600 90,000 280,600 2,000 shares On July 1, Year 2, the shares of S-Mart were sold for P70,000. The balance of the equity pertaining to these shares was transferred to the retained earnings account. On December 31, Year 2, Asia Textile shares were quoted at P440 per share; RJ shares were quoted at P138 per share. How much is the required debit to other comprehensive income account at the end of Year 2 to bring the investment account to its correct valuation? P43,500 P37,000 P30,600 P10,600 а. b. с. d.

Silahis Trading made investments in non-trading equity securities. The cumulative “Holding Gain or Loss" account has a debit balance of P12,900 at December 31, Year 1. An analysis of the investments on December 31, Year 1 showed the following: No. of Shares or Face Value 600 shares 225 shares Fair Value Asia Textile ordinary S-Mart, Inc. ordinary RJ Company ordinary Cost P307,500 P270,000 76,500 269,500 P653,500 P640,600 90,000 280,600 2,000 shares On July 1, Year 2, the shares of S-Mart were sold for P70,000. The balance of the equity pertaining to these shares was transferred to the retained earnings account. On December 31, Year 2, Asia Textile shares were quoted at P440 per share; RJ shares were quoted at P138 per share. How much is the required debit to other comprehensive income account at the end of Year 2 to bring the investment account to its correct valuation? P43,500 P37,000 P30,600 P10,600 а. b. с. d.

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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No. 18
Silahis Trading made investments in non-trading equity securities. The cumulative “Holding Gain or Loss" account has a debit balance of P12,900 at December 31, Year 1. An analysis of the investments on December 31, Year 1 showed the following: No. of Shares or Face Value 600 shares 225 shares Fair Value Asia Textile ordinary S-Mart, Inc. ordinary RJ Company ordinary 2,000 shares Cost P307,500 P270,000 76,500 269,500 P653,500 P640,600 90,000 280,600 On July 1, Year 2, the shares of S-Mart were sold for P70,000. The balance of the equity pertaining to these shares was transferred to the retained earnings account. On December 31, Year 2, Asia Textile shares were quoted at P440 per share; RJ shares were quoted at P138 per share. How much is the required debit to other comprehensive income account at the end of Year 2 to bring the investment account to its correct valuation? P43,500 P37,000 Р30,600 P10,600 а. b. С. d.
Transcribed Image Text:Silahis Trading made investments in non-trading equity securities. The cumulative “Holding Gain or Loss" account has a debit balance of P12,900 at December 31, Year 1. An analysis of the investments on December 31, Year 1 showed the following: No. of Shares or Face Value 600 shares 225 shares Fair Value Asia Textile ordinary S-Mart, Inc. ordinary RJ Company ordinary 2,000 shares Cost P307,500 P270,000 76,500 269,500 P653,500 P640,600 90,000 280,600 On July 1, Year 2, the shares of S-Mart were sold for P70,000. The balance of the equity pertaining to these shares was transferred to the retained earnings account. On December 31, Year 2, Asia Textile shares were quoted at P440 per share; RJ shares were quoted at P138 per share. How much is the required debit to other comprehensive income account at the end of Year 2 to bring the investment account to its correct valuation? P43,500 P37,000 Р30,600 P10,600 а. b. С. d.
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