On January 11, 2021, BERRY Company declared and distributed its trading securities as dividend. At the time of declaration, the investment has a carrying value of ₱500,000 and a related unrealized loss of ₱100,000. By what amount should BERRY Company charge its Retained Earnings as a result of the dividend declaration? a. ₱ 400,000 b. ₱ 100,000 c. ₱ 600,000 d. ₱ 500,000
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- On January 11, 2021, BERRY Company declared and distributed itstrading securities as dividend. At the time of declaration, the investmenthas a carrying value of ₱500,000 and a related unrealized loss of₱100,000. By what amount should BERRY Company charge its RetainedEarnings as a result of the dividend declaration? Choices: ₱ 400,000₱ 600,000₱ 500,000₱ 100,0002. On January 11, 2021, BERRY Company declared and distributed its trading securities as dividend. At the time of declaration, the investment has a carrying value of ₱500,000 and a related unrealized loss of ₱100,000. By what amount should BERRY Company charge its Retained Earnings as a result of the dividend declaration? ₱ 600,000 ₱ 500,000 ₱ 400,000 ₱ 100,000During 2021, Lavida Loca Company purchased trading securities with the following cost and market value on December 31, 2021. Cost Market value A 300,000 400,000 B 1,500,000 1,700,000 C 3,800,000 3,900,000 The entity sold Investment C on January 10, 2022 for P 4,000,000 What is the unrealized gain or loss should be reported in the income statement for 2021? a. 100,000 gain b, 100,000 loss c. 400,000 gain d. 400,000 loss
- The related data of Estonia Company: On March 2, 2021, Aruba Inc. declared a cash dividend of P750,000, on which Estonia Company had an 18% ownership. The date of record is March 31, 2021, and the date of payment is April 30, 2021. On May 30, 2021, Estonia Company received a property dividend with a carrying amount of P70,000. The fair value of the property on that date is P80,000 and the fair value on June 30, 2021, which is the date of payment is P89,500. On July 15, 2021, Australia Company declared a liquidating dividend of P500,000, of which Estonia had a 15% interest. How much is the dividend income reported in the Income Statement in 2021?Some of Cullumber Lake Limited's investment securities are classified as trading securities and some are classified as non- trading. The cost and fair value of each category at December 31, 2020, were as follows. Trading securities Nokn-trading securities Cost ¥96,500 ¥59,500 Fair Value ¥85,000 $64,000 Unrealized Gain (Loss) ¥(11,500 ) ¥4,500 At December 31, 2019, the Fair Value Adjustment-Trading account had a debit balance of ¥2,600, and the Fair Value Adjustment-Non-Trading account had a credit balance of ¥6,200. Prepare the required journal entries for each group of securities for December 31, 2020.On its December 31, 2020, balance sheet, Trump Company reported its investment in equity securities, which had cost $600,000, at fair value of $560, 000. At December 31, 2021, the fair value of the securities was $585, 000. What should Trump report on its 2021 income statement as a result of the increase in fair value of the investments in 2021? a. 50. b. Unrealized loss of $15,000. c. Realized gain of $25, 000. d. Unrealized gain of $25,000.
- On its December 31, 2024, balance sheet, Sandhill Company reported its investment in equity securities, which cost $690000, at fair value of $618000. At December 31, 2025, the fair value of the securities was $649000. What should Sandhill report on its 2025 income statement as a result of the increase in fair value of the investments in 2025? O Realized gain of $31000 O Unrealized gain of $31000 O Unrealized loss of $41000 O $0Problem 19: 56. On its December 31, 2020 balance sheet, Polo Company reported securities measured at fair value through other comprehensive income. These securities were acquired at a cost P360,000 and had a year-end fair value of P330,000. On December 31, 2021, the fair value of the securities was P350,000. What should Polo report as 2021 income or loss in the profit or loss statement as a result of the change in market value? Problem 20: Fastfoods Company acquired the following investments classified as trading securities on August 20, 2020: Jolibee shares KFC shares 400,000 250,000 300,000 P McDonald shares On December 31, 2020, the close of the year, these investments had the following market values: Jolibee shares KFC shares 450,000 220,000 310,000 McDonald shares 57. On February 23, 2021, Fastfoods company sold the KFC shares for P230,000. How much would berecognized as gain/ (loss) on sale of securities on the sale of the KFC shares as a component of other comprehensive income?ABC Co. acquired equity securities on May 25, 2020. The acquisition did not result in significant influence over the investee company. The fair value of the investment at December 31, 2020 was $76,000 and $108,000 at December 31, 2021.The adjustment to the Fair Value Adjustment account at December 31, 2021 would be? a. $8,000 debit. b. $32,000 debit. c. $32,000 credit. d. $8,000 credit.
- Apollo Corp. has the following investment which were held throughout 2021-2022: Fair Value Cost 12/31/21 12/31/22 Trading P300,000 P400,000 P380,000 What amount of unrealized gain or loss would Apollo Corp. report in its income statement for the year ended December 31, 2022 related to its investments? O P20,000 unrealized loss. O P20,000 unrealized gain. O P80,000 unrealized gain. O P140,000 unrealized gain.Paul Company presented the following information pertaining to its investments in equity securities. FVPL FVOCICost P1,000,000 P1,000,000Market value December 31, 2020 1,050,000 980,000 December 31, 2019 950,000 920,0001. What amount should Paul Company report as unrealized gain on its 2020 profit or loss? a. P160,000 b. P110,000 c. P100,000 d. P 50,000 2.What amount should Paul report as unrealized gains/losses in the shareholders' equity of its December 31, 2020 statement of financial position? a. P60,000 credit b. P20,000 debit c. P80,000 debit d. P20,000 creditOn January 1, 2021, an entity purchased marketable equity securities for P5,000,000. The equity securities qualify as a financial asset held for trading. The entity also paid P50,000 as commission to the broker. At year-end, the trading securities have a fair value of P6,000,000. The increase in fair value should be recorded with: a.A credit to Financial asset - FVPL, P1,000,000 b.A debit to Unrealized gain - OCI, P1,000,000 c.A debit to Financial asset - FVPL, P1,000,000 d.A debit to Unrealized gain - P/L, P1,000,000