Financial Asset @Fair Value

At December 31, 2019, the equity investment portfolio CORP. is as ollows. Investment Cost Fair Value Unrealized Gain (Loss) Integrity Co. Shares P 17,500 P 15,000 P (2,500) Trustworthy Co. shares 12,500 14,000 1,500 Dignity Co. shares 23,000 25,500 2,500 Total P 53,000 P 54,500 1,500 Previous fair value adjustment balance 200 Fair value adjustment P 1,300 On January 20, 2020, : . CORP. sold Integrity Co. shares for P15,300. The sale proceeds are net of brokerage fees. Required: By what amount would Retained Earnings be increased or decreased as a result of the sale of investment? Your answer At December 31, 2017, CORP. had the following equity securities that were purchased during 2017, its first year of operation: Fair Unrealized Cost Value Gain (Loss) Trading Securities: Security A P 90,000 P 60,000 P(30,000) B 15,000 20.000 5,000 Totals P105.000 P 80.000 P(25.000) Available-for-Sale Securities: Security Y P 70,000 P 80,000 P 10,000 Z 85,000 55,000 (30.000) Totals P155.000 P135.000 P(20.000) All market declines are considered temporary. Fair value adjustments at December 31, 2017 should be established with a corresponding charge against Income Stockholders Equity a. 45,000 b. 30,000 30,000 c. 25,000 20,000 d. 25,000 OA O B O c O D