Reference no: EM133076837
Questions -
Q1. During 2023, Lialani Company bought shares of Burwood Company as follows:
June 10 2,000 shares @ P100 200,000
December 5 3,000 shares @ P120 360,000
560,000
The transactions for 2024 are:
January 10 - Received a cash dividend at P10 per share.
January 20 - Received 20% stock dividend.
December 10 - Sold 3,000 shares at P120 per share.
What is the gain on sale of the shares assuming the average cost approach?
a. 0
b. 80,000
c. 60,000
d. 100,000
Q2. Stuttgart Company reported the following selected balances on its financial statements for each of the three years 2021 - 2023:
|
|
2021
|
2022
|
2023
|
|
Market adjustment - FVPL
|
5,500,000
|
3,750,000
|
(1,200,000)
|
|
Market adjustment - FVOCI
|
(1,300,000)
|
900,000
|
1,350,0000
|
How much net unrealized loss should be shown in the 2023 income statement?
a. 4,950,000
b. 4,500,000
c. 3,600,000
d. 1,200,000
Q3. On January 1, 2023, Geraint Company purchased marketable equity securities at its market value of P5,000,000, while the company also paid commission, taxes and other transaction costs amounting to P200,000. The securities had the following market value on the these dates:
December 31, 2023 4,700,000
December 31, 2024 5,300,000
No securities were sold during 2023 and 2024. What amount of unrealized gain or loss should be reported in the 2024 income statement if the securities were held for trading?
a. 300,000 unrealized loss
b. 700,000 unrealized loss
c. 100,000 unrealized gain
d. 600,000 unrealized gain
Q4. The following in was extracted from the December 31, 2023 statement of financial position of Gail Company:
Noncurrent assets:
Financial assets at fair value through other comprehensive income 2,000,000
Shareholders' equity:
Unrealized loss on financial assets at fair value (200,000)
The FVOCI securities were acquired in 2022 while incurring direct transaction cost of P100,000. What was the historical cost of the financial assets at fair value?
a. 2,100,000
b. 1,800,000
c. 1,900,000
d. 2,200,000