On January 1, 2020, Maya Company appropriately reported a credit balance of P125,000 (before income tax effect) in the fair value adjustment account in conformity with the valuation of investment to other comprehensive income. There was no change during 2020 in the composition of the portfolio of equity security Investments. Pertinent data on December 31, 2020 as follows: Securities Cost Market C PI,500,000 PI,625,000 P 1,250,000 1,300,000 A 2,250,000 2,350,000 Total P5,000,000 P5,275,000 What amount of unrealized gain on these securities should the company report in its 2020 shareholders' equity? a. none b. 275,000 c. 400,000 d. 625,000
On January 1, 2020, Maya Company appropriately reported a credit balance of P125,000 (before income tax effect) in the fair value adjustment account in conformity with the valuation of investment to other comprehensive income. There was no change during 2020 in the composition of the portfolio of equity security Investments. Pertinent data on December 31, 2020 as follows: Securities Cost Market C PI,500,000 PI,625,000 P 1,250,000 1,300,000 A 2,250,000 2,350,000 Total P5,000,000 P5,275,000 What amount of unrealized gain on these securities should the company report in its 2020 shareholders' equity? a. none b. 275,000 c. 400,000 d. 625,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On January 1, 2020, Maya Company appropriately reported a credit balance of P125,000 (before income tax effect) in the fair value adjustment account in conformity with the valuation of investment to other comprehensive income. There was no change during 2020 in the composition of the portfolio of equity security Investments. Pertinent data on December 31, 2020 as follows:
Securities Cost Market
C PI,500,000 PI,625,000
P 1,250,000 1,300,000
A 2,250,000 2,350,000
Total P5,000,000 P5,275,000
Securities Cost Market
C PI,500,000 PI,625,000
P 1,250,000 1,300,000
A 2,250,000 2,350,000
Total P5,000,000 P5,275,000
What amount of unrealized gain on these securities should the company report in its 2020 shareholders' equity?
a. none
b. 275,000
c. 400,000
d. 625,000
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