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How much is net gain or loss reported on income statement

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Reference no: EM132854259

Question - On January 1, 2021, Jeremiah Company purchased trading equity investments which are irrevocably designated at FVPL:

Security

Purchase price

Transaction costs

Fair value, Dec. 31, 2021

A

P1,000,000

P100,000

P1,500,000

B

2,000,000

200,000

2,400,000

C

4,000,000

400,000

4,700,000

On July 5, 2021, the entity sold Security C amounting to P5,200,000.

Requirements -

1. Determine the unrealized gain/loss on December 31, 2021?

2. Determine the net gain/loss reported on the income statement on December 31, 2021?

3. What are the related journal entries?

4. Assuming, the entity irrevocably designated it at FVOCI, how much is the unrealized gain/loss - FVOCI on December 31, 2021?

5. Assuming, the entity irrevocably designated it at FVOCI, how much is the net gain/loss reported on the income statement on December 31, 2021?

6. Assuming, the entity irrevocably designated it at FVOCI, what are the related journal entries?

Reference no: EM132854259

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