1. On January 1, 2018, ABC Company has investment in equity designated as at FVOCI with a fair value of P600,000. These securities were acquired a year ago at a cost of P625,000. On March 31,2018, ABC exchanged these securities for a piece of land from mars company. The carrying amount of the land in books of Mars Company was P480,000 and has a zonal value of P800,000. At the time of exchange, the shares, which was publicly listed, has a fair value of P650,000.

Compute for the gain on exchange to be recognized in 2018 equity

P50,000

Answer not given

P0

P170,000

P25,000

2. During 2017, ABC Company purchased marketable equity securities as investment. These securities are classified as FVOIC. The cost and market value at December 31, 2017, were as follows:

Security Cost Fair Value

A-100 shares 2,800 3,400

B-1,000 shares 17,000 15,300

C-2,000 shares 31,500 29,500

ABC sold 1,000 shares of Company B stock on January 31, 2018 for P15 per share, incurring P1,500 brokerage commission and taxes. On the sale, Rex should report a realized loss of

P3,500

Answer not given

P1,800

P300

P2,000

3. On January 1,2016, ABC Company purchased 100,000 ordinary shares at P80 per share to be classified as nontrading through other comprehensive income.

On September 30, 2016, the entity received 100,000 stock rights to purchase an additional 100,000 shares at P90 per share. The stock rights had an expiration date of February 1,2017.

On September 30, 2016, each share had a market value of P114 and the stock right had a market value of P6.

What amount should be reported on September 30,2016 as investment in stock rights?

P 100,000

P 500,000

P 400,000

P 600,000

Answer not given

4. The following information relates to ABC Company's accounts receivable for 2018:

Accounts receivable, January 1, 2017 P975,000

Credit sales for 2017 P4,050,000

Sales returns for 2017 P112,500

Write-off P60,000

Collections from customers during 2017 P3,225,000

Estimated future sales returns at December 31, 2017 P75,000

Estimated sales discounts accounts at December 31, 2017 P25,000

What amount should ABC report for accounts receivable at December 31, 2017 statement of financial position?

P1,627,500

Answer not given

P1,527,500

P1,800,000

P1,627,500

5. The following information was available from the inventory records of Mon Company for January:

Units Unit cost Total Cost

Balance at January 1 3,000 P 9.77 P 29,310

Purchases:

January 6 2,000 P 10.30 P 20,600

January 26 2,700 P 10.71 P 28,917

Sales:

January 7 (2,500)

January 31 (3,200)

Balance at January 31 2,000

Assuming that Mon maintains perpetual inventory records, what should be the inventory at January 31, using the moving-average inventory method, rounded to the nearest peso?

P 21,010

P 20,474

P 20,520

P 20,720

Answer not given