Solution-What amount of unrealized gain or loss should be

What amount of unrealized gain or loss should be reported

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Reference no: EM132969476

Question - During the year 2017, Nestle Corp. sold 2,000 shares of Polland Co. for P114,600 and purchased 2,000 more shares of Lj Inc. and 1,000 shares of Dwarfy Company. On December 31, 2017, Nestle's equity securities portfolio consisted of the following:

Investment Quantity Cost Fair value

Lj, Inc. 1,000 shares P45,000 P60,000

Lj, Inc. 2,000 shares 99,000 120,000

Dwarfy Company 1,000 shares 48,000 36,000

Alabang Corp. 2,000 shares 216,000 66,000

Totals P408,000 P282,000

Required -

1. What is the gain or loss on the sale of Polland Co. investment?

a. 5,400 gain

b. 5,400 loss

c. 11,400 gain

d. 11,400 loss

2. What is the carrying amount of the investments on December 31, 2017?

a. 408,000

b. 444,000

c. 282,000

d. 246,000

3. What amount of unrealized gain or loss should be reported in the income statement for the year ended December 31, 2017?

a. P126,000 unrealized gain

b. P126,000 unrealized loss

c. P108,000 unrealized gain

d. P108,000 unrealized loss

Reference no: EM132969476

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What amount of unrealized gain or loss should be reported

Reference no: EM132969476

Reference no: EM132969476

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