1. ON DECEMBER 31, 2014, Entity X acquired an investment for P 100,000 plus a purchase commission of P 2,000. The investment is classified as financial asset through other comprehensive income. On December 31, 2014, quoted market price of the investment is P 100,000. If the investment were sold, a commission of P 3,000 would be paid. On December 31, 2014, the entity should recognize unrealizable loss directly in equity of a. P 2,000 C. P 5,000 b. P 3,000 d. 0 2. Ellane Company began operations at the beginning of current year and provided the following portfolio of equity investments at year-end: Trading Non-trading Aggregate cost 3,600,000 5,500,000 Aggregate fair value 3,200,000 4,500,000 Aggregate lower of cost or market applied to each security 3,040,000 4,200,000 The non trading equity investment is measured at FVOCI. What amount should be reported as unrealized loss in the income statement for the current year? a. 1,400,000 C. 560,000 b. 1,300,000 d. 400,000 3. On January 1, 2015, Erika Company purchased equity investments held for trading. Purchase Price Transaction Cost Market - 12/31/2015 Security A 1,000,000 100,000 1,200,000 Security B 2,000,000 200,000 1,500,000 Security C 3,000,000 300,000 3,100,000 On July 1, 2016, the entity sold Security A for P 1,900,000. What amount should be reported as gain on sale of trading securities in the 2016 income statements? a. 900,000 C. 600,000 b. 700,000 d. 800,000