' INVESTMENTS ‘An entity provided the following information on December 31,2019: i Trading Nontrading Aggregate cost 3,600,000 5,509,000, fair value 3,200,000 4'500,000 Aggregate lower of cost or market applied individually 3,040,000 420,000 \ ‘The costs of disposal are estimated at P100,000 for trading securities and P1S0,000 for nontrading securities. The nontrading securities are designated as measured at FVOCI. What total amour Should be reported as unrealized loss inthe 2019 income statement? & 900,000 3,200 41500,c00 b $60,000 sere) ($500, 3) ‘ 6 400,000 ( 4ercws) vere Checorees) ur= 06) ; 4. 500,000 = 2. On January 1, 2019, an entity purchased equity investments held for trading. Purchase price ‘Trasisaction cost Market - 123172019 Security A 1,000,000 100,000 1,200,000 Security B 2,000,000 200,000 1,500,000 Security C -3,000,000 300,000 3,100,000 _ On July 1, 2020, the entity sold Security A for P1,900,000. Seer A 1. What amount of unrealized loss should be recognized in the 2019 income statement? a. 200,000 » . 800,000 c. 400,000 a. 50 (% 2 Whot amount should be reported as gsin on sale of trading securities in the 2020 income statement? ‘= 900,000 1A1C¢,co0 & 70n00 . Lletoorees) «. 600,000 ¥00, coo 4 800,00 © = 3. On January 1, 2019, an entity purchased nontrading equity investments which are irrevocably designated at FVOCI: Purchase price Transaction cost Market - 123172019 Security A 1,000,000 1,500,000 Security B 2,000,000 3,000,000 Security C 4,000,000 4,700,000 On July 1, 2020, the entity" S6la Security C for PS,200,000. io & 1. What amount should be reported as unrealized gain or loss in 2019 es component of other comprehensive income? is 2000 ‘ « & 2,200,000 gait (3) 500/055) b. 2,200,000 loss “Feo eve) ©. 1,500,000 gain = > So0y Ti3ie, 000 UG-0c1 4. 1/500,000 loss SES }. What is the net adjustment to retained camings as a result of the sale of investment in 2020? @& 500,000 credit CASH 5) UWO,cee b. 500,000 debit FA-F¥ocr 4A c05 ¢. 800,000 credit Ale ” SLe,000 j 4 UG or! 200, cow Aitco.woo ale 305 Secs 222, ‘ ieoress Scanned with CamScannerPage2 leer weer = ice of the share was sneeo cot a sre dividend of 10,000 shares from A Company when the market price Asn i usm . s interest. Ditine "Lan? A cash dividend of P1,500,000 from B Company in which the entity owned a 15% interes ‘at - eet price of the ev. ta. 3804 * 5.000 shares of C Company in lied of cash dividend of P20 per share. The market price of Me Ou-we., ee share was PISO. The entity had 50,000 chases of C Company and owned 5% Company. 'S ,c00 x 150» 235,000 ‘What amount of dividend revenue should be reported for the current year? a. 2,500,000 isoayged SHARES IN LIEU cast b. 2,250,000 ene tae . 1,500,000 d. 2,350,000 8) FV oF swencs 2) caw ow. #5. Amentity provided the following data pertaining to equity investments for the current year: “feta eg 7k...” On October 1, the entity received P600,000 liquidating dividend from A Company, The entity mrwee | box owned a 10% interest in A Company. Lath ewe eet ASseC, 00 1. The entity owned i 2636" interest in B Compaay which declared and paid a P4,000,000 cash “ dividend to shareholders on Dececaber 31. 4, coo,coe p 127.2 $o0n0e verre ye, O December 1, the entity received from C Company a dividend in kind of one share of D ew 28%Company for every 4 C Company shares held. The entity had 100,000 C Company shares which have a market price of PSO per share on December 1. The market price of D Company share was PIO 4s + tooae WORKS ~ Az:00 x (02 ESCe00 Re ‘What amouat should be reported as dividend income forthe current year? i a. 1,650,000 i b. 1,050,000 850,000 4. 250,000 > ». An entity owned 50,000 shares of another entity. These $0,000 shares were originally purchased for P100 per share. The investee distributed 50,000 rights to the entity. The entity was entitled to buy one new share for P149 and five of the ts. Each share had a market value of P150 and each right had market valuc of P10 on the d2te of issuance. The entity exercised all rights. The share rights are eecounted for separately and measured initially at fair value. ‘What total cost should be recorded for the new shares that are acquired by exercising the rights? Wy €2 $900,000 iu. w OO. 1.900.000 b. 1,900,000 are Gat 1 $00,000" 1,650,000 STOLK pren7s Seo, 000 C Steen (eo) d. 1,000,000 —e 4 Sodnes. * Fox do fr 7. Ameantity issued rights to subscribe to its share capital, tke ownership of 4 shares entitling the shareholders to subscribe for 1 share at P1O0. An investor owned $0,000 shares with total cost of 5,000,000, ‘The share is quoted right-on et 125, The share rights are accouuted for separately and measured initially at fair value What is the cost of the new investment assuming all of the share rights|are exercised by the investor? It$-100 + 5,502 280,00 a 1,500,000 “Ary WT yhse.o0e ( $ovmg «1255 100) b. 1,250,000 ©. 1,562,500 d. «1,450,000 6666 Scanned with CamScanner