No. 23.2 On December 31, Year 1 Penthouse Company held 1,000ordinary shares of X Co. in its portfolio of long-term investmentsin equity securities. The shares were designated as at fair valuethrough other comprehensive income. The shares had a cost ofP150 per share and had a fair value of P130 per share at Dec.31, Year 1.During Year 2, Penthouse acquired the following investments,all of which were designated as at fair value through othercomprehensive income: 900 ordinary shares of Y Co. for P180per share and 800 ordinary shares of Z Co. for P220 per share.At the end of Year 2, market values per share were: X - P140;Y - P170; Z - P200.The adjusting entry on December 31, Year 2 wouldincrease unrealized loss by P35,000.increase unrealized loss by P15,000.decrease unrealized loss by P20,000.decrease unrealized loss by P15,000.а.b.С.d.

In case, investments are FV-OCI assets (Fair value through the Other Comprehensive Income), then…

ecember 31, Year 1 Penthouse Company ry shares of X Co. in its portfolio of long-tern ity securities. The shares were designated a: h other comprehensive income. The shares per share and had a fair value of P130 per ar 1.

ecember 31, Year 1 Penthouse Company ry shares of X Co. in its portfolio of long-tern ity securities. The shares were designated a: h other comprehensive income. The shares per share and had a fair value of P130 per ar 1.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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