Reference no: EM132844154

City Company purchased the following portfolio of equity instruments during 2012 and reported the following balances at December 31, 2012. No sales occurred during 2012. All declines are considered to be temporary.

Security Cost                12/31/12            Market Value
X                          P 800,000            P 820,000
Y                           1,400,000               1,320,000
Z                       1,320,000                     1,280,000

Problem 1: If the securities were designated as investment to profit or loss, how much should City Company report as unrealized loss related to the securities in its 2012 profit of loss?

Problem 2: If the securities were designated as investment to other comprehensive income, how much should City Company report as unrealized loss related to the securities in the statement of comprehensive income?

Problem 3: If City Company is a medium-sized entity, what amount of unrealized gain or loss should be reported in the company's other comprehensive income?