FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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At December 31, 2022, ABC Corp. had the following equity securities that were purchased during 2022, its
first year of operation:
Trading Securities:
Security A
B
Totals
FAFV Thru OCI:
Security Y
Z
Totals
Cost
P 90,000
15,000
P105.000
P 70,000
85,000
P155.000
Fair
Value
P 60,000
20,000
P 80.000
P 80,000
55,000
P135.000
Unrealized
Gain (Loss)
P(30,000)
5,000
P(25.000)
P 10,000
(30,000)
P(20.000)
All market declines are considered temporary. How much of the fair value adjustments at December 31, 2022
should be charged against income? equity? Present your solution.
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Transcribed Image Text:At December 31, 2022, ABC Corp. had the following equity securities that were purchased during 2022, its first year of operation: Trading Securities: Security A B Totals FAFV Thru OCI: Security Y Z Totals Cost P 90,000 15,000 P105.000 P 70,000 85,000 P155.000 Fair Value P 60,000 20,000 P 80.000 P 80,000 55,000 P135.000 Unrealized Gain (Loss) P(30,000) 5,000 P(25.000) P 10,000 (30,000) P(20.000) All market declines are considered temporary. How much of the fair value adjustments at December 31, 2022 should be charged against income? equity? Present your solution.
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