What amount of unrealized gain or loss should be reported

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Question 1 - Blue Company acquired 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

ADB

P350,000

P360,000

PNB

425,000

400,000

LBP

525,000

640,000

Required - What is the carrying value of the securities on December 31, 2012 on Blue's balance sheet?

Question 2 - 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

P800,000

P820,000

Y

1,400,000

1,320,000

Z

1,320,000

1,280,000

Required -

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?

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?

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?

Reference no: EM132886234

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