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Answer the problem. Problem 2 Aborigine Company reported the following accounts in the statement of financial position on January 1, 2018. Noncurrent assets Financial asset

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Answer the problem.

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Problem 2 Aborigine Company reported the following accounts in the statement of financial position on January 1, 2018. Noncurrent assets Financial asset - FVOCI 4,000,000 Market adjustment for unrealized loss (500,000) Market Value 3,500,000 Other comprehensive income Unrealized loss (500,000) An analysis of the investment portfolio revealed the following on December 31, 2018. Cost Market XYZ ordinary share ( 5,000 1,000,000 1,200,000 shares) ABC ordinary share (10,000 2,500,000 2,000,000 shares) RST preference share (1,000 500,000 200,000 shares) On July 1, 2019, one-half of ABC ordinary shares were sold for P230/share. On December 31, 2019, the remaining investments have the following market value: XYZ ordinary share 1,000,000 ABC ordinary share 1,500,000 RST preference share 150,000 Determine the following. 1. Entry to record the change in the fair value of the investment on December 31, 2018. N Entries to record the sale of ABC ordinary shares. . The carrying value of the investment as of December 31, 2019. 4. Cumulative unrealized gain/(loss) as of December 31, 2019 to be presented in the 2019 Statement of Financial Position

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