Reference no: EM133183774

Question - Rib Company presented the following analysis of its investments in relation to your audit of its investments for the year ended 2018:

Audit notes:

Wan shares were acquired on February 1, 2018. Dividends of P5 share was received on March 31, 2018. The said dividends were declared on December 30, 2014, to stockholders as of February 20, 2018. Wan shares were selling at P160 per share on December 31, 2018.

Too shares were acquired on March 1, 2018. Half of these shares were later sold on August 1, 2018, at P100 per share. A 10% stock dividend was received on Too shares on December 31, 2018, when its prevailing fair value was P105 per share.

Tri shares were acquired on April 14, 2018. A 20% share dividend was received on Tri shares on August 1, 2018, when the prevailing fair value of the shares was at P132 per share. Half of the shares were sold on December 31, 2018, at their prevailing fair value which was P140 per share.

Poor bonds were acquired on January 1, 2018, and had a three-year remaining term. Interests on the bonds were collectible every December 31. The prevailing effective interest rate on the Poor bonds by December 31, 2018, was at 8% with a prevailing fair market value of P2,071,331.

Required -

1. In connection with your audit, assuming that the equity securities are classified as investments at fair value through other comprehensive income, how much unrealized gain or loss should be reported in the December 31, 2018 statement of financial position?

2. In connection with your audit, assuming that all securities are classified as investments at fair value through profit or loss, how much total unrealized gain or loss should be reported in the 2018 profit or loss?

3. In connection with your audit, assuming that all securities are classified as investments at fair value through profit or loss, how much is the total investments to be presented in the December 31, 2018 statement of financial position?