On January 2, 2023, Precious & Gracious Company purchased marketable equity securities as investment to be measured at fair value. The cost and market value on December 31, 2023 were as follows: Security Classification ✗ Trading Securities ✗ Non-Trading - OCI Z Non-Trading - OCI Cost Market Value Dec 31, 2023 800,000 840,000 2,500,000 2,700,000 3,700,000 3,500,000 The entity sold 75% of Security X shares on June 30, 2024 for P680,000. The entity sold 40% of Security Y shares on October 1, 2024 for P1,300,000. No shares sold for Security Z in year 2024. On December 31, 2024, the remaining securities X, Y, and Z has the following fair values: P195,000; P1,600,000; and P3,850,000, respectively. What total amount should be reported to retained earnings in 2024 for the sale of Security Y? a. 200,000 b. 220,000 300,000 d. 420,000 How much is the gain/(loss) on sale of Security X to be reported in income statement on December 31, 2024? a. 50,000 b. 80,000 C. (120,000) d. (160,000) How much is the unrealized gain / (loss) to be reported in income statement and other comprehensive income on December 31, 2024? Profit or Loss a. (P5,000) b. (P5,000) OCI P300,000 Profit or Loss P15,000 P430,000 d (P15,000) OCI P370,000 P330,000
On January 2, 2023, Precious & Gracious Company purchased marketable equity securities as investment to be measured at fair value. The cost and market value on December 31, 2023 were as follows: Security Classification ✗ Trading Securities ✗ Non-Trading - OCI Z Non-Trading - OCI Cost Market Value Dec 31, 2023 800,000 840,000 2,500,000 2,700,000 3,700,000 3,500,000 The entity sold 75% of Security X shares on June 30, 2024 for P680,000. The entity sold 40% of Security Y shares on October 1, 2024 for P1,300,000. No shares sold for Security Z in year 2024. On December 31, 2024, the remaining securities X, Y, and Z has the following fair values: P195,000; P1,600,000; and P3,850,000, respectively. What total amount should be reported to retained earnings in 2024 for the sale of Security Y? a. 200,000 b. 220,000 300,000 d. 420,000 How much is the gain/(loss) on sale of Security X to be reported in income statement on December 31, 2024? a. 50,000 b. 80,000 C. (120,000) d. (160,000) How much is the unrealized gain / (loss) to be reported in income statement and other comprehensive income on December 31, 2024? Profit or Loss a. (P5,000) b. (P5,000) OCI P300,000 Profit or Loss P15,000 P430,000 d (P15,000) OCI P370,000 P330,000
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter13: Investments And Long-term Receivables
Section: Chapter Questions
Problem 2MC: During 2021, Anthony Company purchased debt securities as a long-term investment and classified them...
Related questions
Question
100%
Write the complete solutions legibly.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step 1: Accounting for investments in securities and the consequences of selling those securities
VIEWStep 2: Amount to be reported to retained earnings for the sale of Security Y.
VIEWStep 3: Gain/(loss) on sale of Security X to be reported in the income statement:
VIEWStep 4: Unrealized gain/loss to be reported in income statement and other comprehensive income on 31/12/24
VIEWSolution
VIEWStep by step
Solved in 5 steps with 7 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning