1. The net unrealized gain (or loss) included in DAP Company's December 31, 2018 statement of financial position is:

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Problem No. 5
DAP Company started operation on January 1, 2018 and acquired the following securities:
Trading Securities Portfolio
Abad Company
Aquino Company
Lacierda Company
Fair value
P2,400,000
2,600,000
1,900,000
Fair value
FVTOCI Portfolio
Coloma Company
Soliman Company
Villanueva Company
P3,050,000
2,725,000
1,875,000
No disposals were made during 2018. The fair values of the investment securities as of December 31,
2018 are as follows:
Trading Securities Portfolio
Abad Company
Aquino Company
Lacierda Company
Fair value
P2,380,000
2,600,000
1,870,000
Page |S/TOCI Portfolio
Coloma Company
Soliman Company
Villanueva Company
Fair value
P3,070,000
2,737,500
1,871,000
The following additional transactions happened in 2019:
On September 1, DAP Company sold its Aquino Company securities for P2,590,000.
On October 1, DAP Company exchanged it Soliman Company portfolio for a piece of land. The
carrying amount of the land was P1,937,500 an a zonal value of P2,777,500. At the time of
exchange, the Soliman Company shares which was publicly listed, has a fair value of P2,797,500.
On November 1, DAP Company acquired several shares of De Lima Company for P2,100 which is
classified as part of its trading securities.
The fair values of the investment securities as of December 31, 2019 are as follows:
Trading Securities Portfolio
Abad Company
De Lima Company
Fair value
P2,382,500
1,070,000
FVTOCI Portfolio
Coloma Company
Villanueva Company
Fair value
P3,080,000
1,867,500
Transcribed Image Text:Problem No. 5 DAP Company started operation on January 1, 2018 and acquired the following securities: Trading Securities Portfolio Abad Company Aquino Company Lacierda Company Fair value P2,400,000 2,600,000 1,900,000 Fair value FVTOCI Portfolio Coloma Company Soliman Company Villanueva Company P3,050,000 2,725,000 1,875,000 No disposals were made during 2018. The fair values of the investment securities as of December 31, 2018 are as follows: Trading Securities Portfolio Abad Company Aquino Company Lacierda Company Fair value P2,380,000 2,600,000 1,870,000 Page |S/TOCI Portfolio Coloma Company Soliman Company Villanueva Company Fair value P3,070,000 2,737,500 1,871,000 The following additional transactions happened in 2019: On September 1, DAP Company sold its Aquino Company securities for P2,590,000. On October 1, DAP Company exchanged it Soliman Company portfolio for a piece of land. The carrying amount of the land was P1,937,500 an a zonal value of P2,777,500. At the time of exchange, the Soliman Company shares which was publicly listed, has a fair value of P2,797,500. On November 1, DAP Company acquired several shares of De Lima Company for P2,100 which is classified as part of its trading securities. The fair values of the investment securities as of December 31, 2019 are as follows: Trading Securities Portfolio Abad Company De Lima Company Fair value P2,382,500 1,070,000 FVTOCI Portfolio Coloma Company Villanueva Company Fair value P3,080,000 1,867,500
Questions:
Based on the above data, answer the following:
1. The net unrealized gain (or loss) included in DAP Company's December 31, 2018 statement of
financial position is:
a. (21,500)
2. The gain (or loss) from the exchange of assets in 2019 included in DAP Company's income statement
а. 72,500
3. The gain (or loss) arising from the sale of the trading securities in 2019 is
b. (50,000)
C. 28,500
d. 32,500
b. 60,000
C. 52,500
d. nil
b. (10,000)
d. 40,000
a. (40,000)
4. The net unrealized gain reported in DAP Company's December 31, 2019 statement of financial
C. 10,000
position is
а. 45,000
b. 29,000
C. 22,500
d. 6,500
Transcribed Image Text:Questions: Based on the above data, answer the following: 1. The net unrealized gain (or loss) included in DAP Company's December 31, 2018 statement of financial position is: a. (21,500) 2. The gain (or loss) from the exchange of assets in 2019 included in DAP Company's income statement а. 72,500 3. The gain (or loss) arising from the sale of the trading securities in 2019 is b. (50,000) C. 28,500 d. 32,500 b. 60,000 C. 52,500 d. nil b. (10,000) d. 40,000 a. (40,000) 4. The net unrealized gain reported in DAP Company's December 31, 2019 statement of financial C. 10,000 position is а. 45,000 b. 29,000 C. 22,500 d. 6,500
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