Reference no: EM132675180

Silahis Trading made investments in non- trading equity ecurities. The cumulative "Holding Gain or Loss" account has a debit balance of P12,900 at December 31, Year 1. An analysis of the investments on December 31, Year 1 showed the following

                                             No. of Shares or Face Value            Cost                     Fair Value

Asia Textile ordinary           600 shares                                P307,500            P270,000
S- Mart, Inc. ordinary         225 shares                                 76,500              90,000
RJ Company ordinary          2,000 shares                                 269,500            280,600
                                                                                       P653,500         P640,600

On July 1, Year 2, the shares of S- Mart were sold for P70,000. The balance of the equity pertaining to these shares was transferred to the retained earnings account. On December 31, Year 2, Asia Textile shares were quoted at P440 per share; RJ shares were quoted at P138 per share.

Problem 1: How much is the required debit to other comprehensive income account at the end of Year 2?

a. P43,500

b. P37,000

c. P30,600

d. P10,600