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.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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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.
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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