1.) PINK Company purchased 50,000 shares (5% ownership) of WHITE Company on January 2, 2020 at 34 per share. PINK received a stock dividend of 15% on March 31, 2020 when the market price of the share is 40. On November 30, PINK paid 20 per share special assessment on the shares. On December 15, 2020, WHITE paid a cash dividend of 8 per share. On December 31, the prevailing market price of the trading security is at 49 per share. How much is the unrealized gain(loss) that should be presented in the statement of comprehensive income? *

a. 117,500 gain

b. 250,000 loss

c. 750,000 gain

d. 32,500 loss

2.) PINK Company purchased 50,000 shares (5% ownership) of WHITE Company on January 2, 2020 at 34 per share. PINK received a stock dividend of 15% on March 31, 2020 when the market price of the share is 40. On November 30, PINK paid 20 per share special assessment on the shares. On December 15, 2020, WHITE paid a cash dividend of 8 per share. On December 31, the prevailing market price of the trading security is at 49 per share. What is the carrying value of the above investment on December 31, 2020? *

a. 2,817,500

b. 2,450,000

c. 3,105,000

d. 2,700,000

3.) On October 17, CORAL Company issued 15,000 shares of its 100 par ordinary share in acquiring a land that has a fair value of 1,700,000 during that date. The ordinary share is actively selling at 120 per share. On December 31, the land has a fair value of 2,100,000. At what amount should the Land be recorded in the books of CORAL? *

a. 2,100,000

b. 1,800,000

c. 1,700,000

d. 1,500,000

4.) LIME Co. decided to construct a building to expand its operations. The entity decided to obtain a 5-year loan from MAROON Bank for P10,000,000 at 12% on December 31, 2019, to finance the construction of the building. The construction started on January 2, 2020, and the building was completed on December 31 of the same year. Payments were made as follows: January 2 P1,500,000; April 1 P2,000,000; June 1 P2,100,000; October 1 P1,700,000; December 1 P2,200,000. How much borrowing cost shall be capitalized? *

a. 1,140,000

b. 1,200,000

c. 580,000

d. 1,100,000