10. Whitlow Incorporated and Tanaka Manufacturing both have unrealized gains from purchased debt securities. Whitlow reported their unrealized gains on the statement of profit or loss as part of net income, but Tanaka did not. Why?

a. Whitlow classified their debt securities as FVOCI, whereas Tanaka classified their debt securities as long-term securities.

b. Whitlow classified their debt securities as long-term securities, whereas Tanaka classified their debt securities as FVPL.

c. Whitlow classified their debt securities as FVOCI, whereas Tanaka classified their debt securities as FVPL

d. Whitlow classified their debt securities as FVPL, whereas Tanaka classified their debt securities as FVOCI

15. Merchandise costing P12,250 was received on December 28, 2019, and the items were sent to consignee; it was marked OUT ON CONSIGNMENT. The inventories were not included in December 31, 2019 balance. Is the accounting for inventories correct? True or False?

17. How should the following costs affect inventory?

I. Freight out;

II. Insurance expense on manufacturing plant

A. I. No Effect; II. Increase

B. I. No Effect; II. No Effect

C. I. Increase; II. No effect

D. I. Increase; II. Increase