On January 1, 2018, ABC Company has investment in equity designated as at FVOCI with a fair value of P600, 000. These securities were acquired a year ago at cost of P625, 000. On March 31, 2018, ABC exchanged these securities for a piece of land from Mars Company. The carrying amount of the land in books of Mars Company was a zonal value of P800, 000. At the time of exchange, the shares, which was publicly listed, has a fair value of P650,000

The necessary journal entry on March 31, will include a

• Debit to land, P650, 000
• Answer not gain
• Credit gain on exchange, P25, 000
• Debit to loss on exchange, P25, 000
• Debit to financial asset at FVOCI, P600, 000