FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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An entity buys and sells securities expecting to earn profits on short-term differences in price. During 2016, the
entity purchased the following trading securities:
Security
A
Cost
195,000
300,000
660,000
Fair Value Dec. 31, 2016
225,000
162,000
678,000
Before any adjustments related to these trading securities, the entity had net income of P900,000.
What is the entity's net income after making any necessary trading security adjustments?
900,000
810,000
a.
b.
762,000
d. 948,000
C.
What would the net income be if the fair value of security B were P285,000?
a. 867,000
900,000
885,000
933,000
b
C.
d.
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Transcribed Image Text:An entity buys and sells securities expecting to earn profits on short-term differences in price. During 2016, the entity purchased the following trading securities: Security A Cost 195,000 300,000 660,000 Fair Value Dec. 31, 2016 225,000 162,000 678,000 Before any adjustments related to these trading securities, the entity had net income of P900,000. What is the entity's net income after making any necessary trading security adjustments? 900,000 810,000 a. b. 762,000 d. 948,000 C. What would the net income be if the fair value of security B were P285,000? a. 867,000 900,000 885,000 933,000 b C. d.
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