On January 1, 2020, the Gim Corporation purchased equity securities for P2,000,000. The company also paid commissions, taxes and other transaction costs amounting to P50,000. Because the securities were not acquired for immediate trading, Gim exercised the option to take the change in fair value through other comprehensive income. The securities had fair values at December 31, 2020 and 2021, respectively: P1,750,000 and P2,100,000. No securities were sold during 2020. What amount of unrealized gain (loss) should be reported in the 2020 statement of financial position? a. P250,000 cumulative unrealized loss b. P100,000 cumulative unrealized gain c. P200,000 cumulative unrealized loss d. P50,000 cumulative unrealized gain
On January 1, 2020, the Gim Corporation purchased equity securities for P2,000,000. The company also paid commissions, taxes and other transaction costs amounting to P50,000. Because the securities were not acquired for immediate trading, Gim exercised the option to take the change in fair value through other comprehensive income. The securities had fair values at December 31, 2020 and 2021, respectively: P1,750,000 and P2,100,000. No securities were sold during 2020. What amount of unrealized gain (loss) should be reported in the 2020 statement of financial position? a. P250,000 cumulative unrealized loss b. P100,000 cumulative unrealized gain c. P200,000 cumulative unrealized loss d. P50,000 cumulative unrealized gain
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On January 1, 2020, the Gim Corporation purchased equity securities for P2,000,000. The company also paid commissions, taxes and other transaction costs amounting to P50,000. Because the securities were not acquired for immediate trading, Gim exercised the option to take the change in fair value through other comprehensive income. The securities had fair values at December 31, 2020 and 2021, respectively: P1,750,000 and P2,100,000. No securities were sold during 2020. What amount of unrealized gain (loss) should be reported in the 2020 statement of financial position ?
a. P250,000 cumulative unrealized loss
b. P100,000 cumulative unrealized gain
c. P200,000 cumulative unrealized loss
d. P50,000 cumulative unrealized gain
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