1. During 2020, LOVE Company purchased marketable equity securities for P1,850,000 to be held as trading investments. In 2020, the entity appropriately reported an unrealized loss of 200,000 in the income statement. There was no change during 2021 in the composition of the portfolio of trading securities. Pertinent data on December 31, 2021 are:

Security Cost Market

A 600,000 700,000

B 450,000 400,000

C 800,000 900,000

What amount of unrealized gain on these securities should be included in the 2021 income statement?

a. 350,000

b. 150,000

c. 550,000

d. 0

2. On December 31, 2020, the cumulative loss recognized in other comprehensive income was P400,000 and the carrying amount of the investment was P2,600,000.

On December 31, 2021, the issuer of the equity instrument was in severe financial difficulty and the fair value of the equity investment had fallen to P1,200,000.

What cumulative amount of unrealized loss should be reported as component of other comprehensive income in the statement of changes in equity for the year ended December 31, 2021?

a. 1,400,000

b, 1,800,000

c. 1,000,000

d. 0

3.During 2020, KILAYKIT Company purchased marketable equity securities to be measured at fair value through other comprehensive income.

On December 31, 2020, the balance in the unrealized loss of these securities was P200,000. There were no security transactions during 2021. Pertinent data on December 31, 2021 are:

Security

X Y Z

Cost

2,100,000

1,850,000

1,050,000

Market

1,600,000

2,000,000

900,000

In the statement of changes in equity for 2021, what amount should be included as cumulative unrealized loss as component of other comprehensive income?

a. 500,000

b. 300,000

c. 200,000

d. 0

4. At the beginning of current year, MYLOVES Company began operations. The following information related to the portfolio of equity securities held at year-end:

Trading

Aggregate cost 360,000

Aggregate fair value 320,000

Non-trading 550,000 450,000 420,000

Aggregate lower of cost or market value applied to each security in the portfolio

304,000

The nontrading investments are measured at fair value through the other comprehensive income. What amount should be reported as unrealized loss in the income statement for the current year?

a. 140,000 b. 186,000

c. 40,000 d. 56,000

5.A Company purchased the following investments during 2020:

Classification Cost Market Value December 31,2020

Security A Trading 900,000 1,000,000

Security B Trading 1,000,0000 1,600,000

On July 31, 2021, the entity sold all of the shares of Security B for P1,100,000. On December 31, 2021, the shares of Security A had a market value of P600,000. No other activity occurred during 2021 in relation to the trading security portfolio. What total loss on the trading securities should be reported in the income statement for 2021?

a. 500,000 b. 400,000 c. 900,000 d. 100,000