What amount of unrealized gain on these securities

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Reference no: EM132840846

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Q1. During 2019, Hanz Company purchased marketable equity securities for P650,000 to be held as trading securities. In 2019, the entity appropriately reported an unrealized loss of P30,000 in the income statement. There was no change during 2019 in the composition of the portfolio of trading securities. On December 31, 2020 the market value of the portfolio total P700,000. What amount of unrealized gain on these securities should be included in the 2020 income statement?

Q2. On December 31, 2019, Kier Corporation purchased 30,000 shares of Lord Company's shares at P100 each. On December 31, 2019, Lord Company's shares are selling at P125 per share. On February 1, 2020, Kier received 30,000 rights entitling it to purchase at P130 per share one additional share of Lord for each 10 shares then held. On that date, Lord's shares were selling ex-rights at P145 and the rights were selling at P5.00. If the securities were classified by Kier as Trading Securities at the time of acquisition and assuming the entire share rights were sold at their prevailing market price of P5.00, what amount of gain on sale of share rights should Kier Corporation recognize?

Q3. Martin Company provided the following data for the current year: -On March 1, Martin received P600,000 cash dividend from Paul Company in which Martin owns 30% interest. -Martin owns 12% interest in James Company, which declared and paid P3,000,000 cash dividend on December 15. - On September 1, Martin received an P80,000 liquidating dividend from Luke Company. Martin owns a 5% interest in Luke Company. What amount should Martin Company report as dividend income for the current year?

Q4. Baur Company acquired 20,000 ordinary shares on October 1 for P1,344,000 to be held for trading. On November 30, the investee distributed a 12% ordinary share dividend when the market price of the share was P65. On December 31, the entity sold 5,000 shares for P350,000. What amount should be reported as gain on sale of trading securities in the current year?

Q5. On January 2, 2020, Hanz Corporation bought 30% of the outstanding ordinary shares of Eve Corporation for P1,560,000 cash. Hanz accounts for this investment by the equity method. At the date of acquisition of the stock, Eve's net assets had a book and fair value of P5,200,000. Eve's net income for the year ended December 31, 2020 was P1,400,000. During 2020, Eve declared and paid cash dividends of P200,000. On December 31, 2020, how much should Hanz carry its investment in Eve?

Q6. Dahlia Company has 35,000 ordinary shares of Amelie Corporation as an investment in equity securities through other comprehensive income. These shares were acquired at fair value, which was P43 per share on July 1, 2019. On December 31, 2019, the market value of these shares is P50 per share. Dahlia Company sold 15,000 shares of its investment in Amelie Corporation on January 28, 2020 for P60 per share. What amount of realized gain should Dahlia Company recognize in selling these shares?

Reference no: EM132840846

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