5. In 2020, the entity purchased the following equity securities for the purpose of selling them in the near term. 12/31/2021 P1,920,000 Fair Values Cost P2,000,000 On June 30, 2022, the entity transferred its investment to financial assets at FVTOCI because of a rare circumstance (arising from a single event that is unusual and highly unlikely to recur in the near term). 6/30/2022 P1,800,000 12/31/2022 P1,720,000 What amount should the entity report as unrealized loss in its 2022 profit or loss? a. P200,000 b.P120,000 c. P80,000 d.PO
5. In 2020, the entity purchased the following equity securities for the purpose of selling them in the near term. 12/31/2021 P1,920,000 Fair Values Cost P2,000,000 On June 30, 2022, the entity transferred its investment to financial assets at FVTOCI because of a rare circumstance (arising from a single event that is unusual and highly unlikely to recur in the near term). 6/30/2022 P1,800,000 12/31/2022 P1,720,000 What amount should the entity report as unrealized loss in its 2022 profit or loss? a. P200,000 b.P120,000 c. P80,000 d.PO
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![5. In 2020, the entity purchased the following equity securities for the purpose of
selling them in the near term.
12/31/2021
P1,920,000
Fair Values
6/30/2022
P1,800,000
Cost
P2,000,000
On June 30, 2022, the entity transferred its investment to financial assets at
FVTOCI because of a rare circumstance (arising from a single event that is
unusual and highly unlikely to recur in the near term).
12/31/2022
P1,720,000
What amount should the entity report as unrealized loss in its 2022 profit or
loss?
a. P200,000
b.P120,000
c. P80,000
d.PO](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Faa829733-7e24-42bb-91b1-b6f9f22fa287%2Fca6c7367-4af5-4a95-b1cd-86f7b5aeb021%2Fjbedyas_processed.png&w=3840&q=75)
Transcribed Image Text:5. In 2020, the entity purchased the following equity securities for the purpose of
selling them in the near term.
12/31/2021
P1,920,000
Fair Values
6/30/2022
P1,800,000
Cost
P2,000,000
On June 30, 2022, the entity transferred its investment to financial assets at
FVTOCI because of a rare circumstance (arising from a single event that is
unusual and highly unlikely to recur in the near term).
12/31/2022
P1,720,000
What amount should the entity report as unrealized loss in its 2022 profit or
loss?
a. P200,000
b.P120,000
c. P80,000
d.PO
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