Strawberry Corp. has various equity investment at fair value through profit or loss transactions during 2020 and 2021. The acquisition cost of all the securities in its portfolio during 2020 was P 532,000. At December 31, 2020 and December 31, 2021, the market values of these investments were P 541,000 and P 512,000, respectively. In 2022, all of these securities were sold for P 550,000. Assuming no other transactions are noted regarding these financial assets at fair value through profit or loss, what is the amount of unrealized gain/loss reported in the 2021 income statement relating to these securities? A. P 29,000 loss B. P 20,000 loss C. P 29,000 gain D. P 20,000 gain

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Strawberry Corp. has various equity investment at fair value through profit or loss
transactions during 2020 and 2021. The acquisition cost of all the securities in its
portfolio during 2020 was P 532,000. At December 31, 2020 and December 31, 2021,
the market values of these investments were P 541,000 and P 512,000, respectively. In
2022, all of these securities were sold for P 550,000.
Assuming no other transactions are noted regarding these financial assets at fair value
through profit or loss, what is the amount of unrealized gain/loss reported in the 2021
income statement relating to these securities?
A. P 29,000 loss
B. P 20,000 loss
C. P 29,000 gain D. P 20,000 gain
Transcribed Image Text:Strawberry Corp. has various equity investment at fair value through profit or loss transactions during 2020 and 2021. The acquisition cost of all the securities in its portfolio during 2020 was P 532,000. At December 31, 2020 and December 31, 2021, the market values of these investments were P 541,000 and P 512,000, respectively. In 2022, all of these securities were sold for P 550,000. Assuming no other transactions are noted regarding these financial assets at fair value through profit or loss, what is the amount of unrealized gain/loss reported in the 2021 income statement relating to these securities? A. P 29,000 loss B. P 20,000 loss C. P 29,000 gain D. P 20,000 gain
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