Question
During 2019, Dalton Enterprises acquired various Available for Sale securities in ordinary and preference shares.At December 31, 2019, the Unrealized Gain/Loss account had a debit
During 2019, Dalton Enterprises acquired various Available for Sale securities in ordinary and preference shares.At December 31, 2019, the Unrealized Gain/Loss account had a debit balance of P35,000.During 2020, there were no transactions involving this investment.As of December 31, 2020, relevant cost and market value data for the current portfolio were as follows:
SecurityCostMarket value
A Co.-ordinary sharesP140,000P127,000
B-Co.-preferential shares195,000170,000
C Co.- common shares175,000188,000
P510,000P485,000
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Dalton's Enterprises' income statementfor 2020 would indicate a(an)
a. recovery of unrealized loss on security investment of P10,000
b. unrealized loss on security investments for P10,000
c. recovery of unrealized loss on security investment of P35,000
d. unrealized loss on security investments for P25,000
Please choose one and explain. Thank you
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