Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

During the year 2017, Nestle Corp. sold 2,000 shares of Polland Co. for P114,600 and purchased 2,000 more shares of Lj Inc. and 1,000 shares

During the year 2017, Nestle Corp. sold 2,000 shares of Polland Co. for P114,600 and purchased 2,000 more

shares of Lj Inc. and 1,000 shares of Dwarfy Company. On December 31, 2017, Nestle's equity securities

portfolio consisted of the following:

Investment Quantity Cost Fair value

Lj, Inc. 1,000 shares P45,000 P60,000

Lj, Inc. 2,000 shares 99,000 120,000

Dwarfy Company 1,000 shares 48,000 36,000

Alabang Corp. 2,000 shares 216,000 66,000

Totals P408,000 P282,000

5. What is the gain or loss on the sale of Polland Co. investment?

a. 5,400 gain

b. 5,400 loss

c. 11,400 gain

d. 11,400 loss

6. What is the carrying amount of the investments on December 31, 2017?

a. 408,000

b. 444,000

c. 282,000

d. 246,000

7. What amount of unrealized gain or loss should be reported in the income statement for the year ended December

31, 2017?

a. P126,000 unrealized gain

b. P126,000 unrealized loss

c. P108,000 unrealized gain

d. P108,000 unrealized loss

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting

Authors: Michelle L. Hanlon, Robert P. Magee, Glenn M. Pfeiffer, Thomas R. Dyckman

6th Edition

1618533118, 978-1618533111

More Books

Students also viewed these Accounting questions

Question

Find the coordinate vector of with respect to the basis of M22. 3

Answered: 1 week ago

Question

What are your current research studies?

Answered: 1 week ago

Question

1. What is the meaning of the information we are collecting?

Answered: 1 week ago

Question

3. How much information do we need to collect?

Answered: 1 week ago

Question

2. What types of information are we collecting?

Answered: 1 week ago