1. ABC, Inc. acquired 50,000 ordinary shares of AAA for P5 per share and 125, 000 ordinary shares of BBB Corp for P10 per share on January 2, 2016. Both AAA Inc. and BBB Corp have P500,000 ordinary shares outstanding. Both securities are being held as long-term investments. Changes in retained earnings for AAA and BBB for 2016 and 2017 are as follows:

AAA, Inc. BBB Corp

Retained earnings, 1/1/2016 P1, 000,000 (P175,000)

Cash dividends, 2016 (125, 000)

Profit for 2016 200, 000 325, 000

Retained earnings, 12/31/2016 1,075,000 150,000

Cash dividends, 2017 (150, 000) (50, 000)

Profit for 2017 300, 000 125, 000

Retained earnings, 12/31/2017 1,125,000 225,000

Market value of share:

12/31/2016

12/31/2017

P7.00

6.50

P12.00

15.00

How much should be reported as accumulated net unrealized gain or loss- OCI in equity as of December 31, 2017?

• P75,000 gain
• P25,000 loss
• P25,000 gain
• P0
• Answer not given