PLEASE ANSWER PROBLEM 3

- Net of P 19,500 estimated transaction costs that would be incurred on the sale of the securities Net of R 4,500 estimated transaction casts that would be incurred on the sale of the + costs securities. Based on the above and the result of your audit, you are to provide the answers to the folowing: The sales register for December 2019 and January, 2020, showed the following details: December Register Invoice No. FOB Terms Date Shipped Amount 300 Destination 12/30 P 50,000 301 Shipping point 12/30 62,500 302 Destination 12/23 47,500 303 Destination 12/24 82,500 304 Shipping point 01/02 56,000 305 Shipping point 12/29 90,000 January Register Invoice No. FOB Terms Date Shipped Amount 306 Destination 12/29 67,500 307 Shipping point 12/29 74,500 308 Destination 01/02 140,000 309 Shipping point 01/04 73,000 310 Shipping point 12/27 67,500 5. What amount of unrealized gain on these securities should be reported in the 2017 income statement? 6. What is the gain on the sale of Komawo Co. ordinary shares on March 1, 2017? 7. What amount should be reparted as trading securities in Oppa's statement of financial position on December 31, 2017? Problem 4. On January 1, 2017, KIM TRUMP Company purchased 200,000 ordinary shares of RANY TSE Corporation at 100 per share. The shares are dassified as available-for-sale. The folowing table sets out the changes in the fair value of the shares and the nature of the change in each year: Based on the above data, determine the following: Year 2017 2018 2019 Fair Value Change (R200,000) (P400,000) 500,000 2. Adjusted Inventory at December 31, 2019 is 3. Adjusted sales at December 31, 2019 is 4. How much sales for the month of January 2020 were erroneously recorded in December 2019? Nature of change No objective evidence of impairment Objective evidence of impairment. Objective evidence of reversal of impairment. During 2018, the company adapted PFRS 9 as it took effectively by January 1, 2018. 8. How much should be recognized in 2018 profit or loss as a result of the fair value changes? Problem 5. The account of the 15P CO. appears as shown below at December 31, 2018: 7/15 CR15 Motor vehicles 28,500,000 79,000 654,000 1/1 Balance 3/1 V5 7/1 V8 P 300,000 PROBLEM 3. OPPA CO.'s portfolio of trading securities/financial instruments through profit or loss includes the following on December 31, 2016: Cost Fair Value 15,000 ordinary shares of Komawo Co. R 1,131,000 R 1,251,000 30,000 ordinary shares of Kansaharida Co. 1.638,000 1.710.000 23,069.000 22.961.000 All of the above securities have been purchased in 2016. In 2017, Oppa Co. completed the following securities transactions: Mar. 1 Sold 15,000 shares of Komawo Co. ordinary shares at P93, less brokerage commission of 13,500. April 1 Bought 1,800 ordinary shares of Kansaharida, Inc at P135 plus commission, taxes, and other transaction costs of R4,950. The Oppa Co. portfolio of trading securities appeared as follows on December 31, 2017: Cost Fair Value 30,000 ordinary shares of Komawo Co. R 1,638,000 R 1,740,000 1,800 ordinary shares of Kansahamida, Inc. 247.950 225.000 21,885,950 21,965,000 Your examination revealed that P 79,000 represents the 2018 registration fees of JSP's motor vehicles. The charge of P 654,000 represents the invoice price of a new cara-carag car, including a 14,000 comprehensive car insurance premium for one year. The credit of P300,000 represents the proceeds from the sale of a truck costing P 1,200,000 and had been fully depredated. Fifty percent (50%) of the beginning balance represents fully depredated motor vehicles. The Co.'s policy on depredation is detailed as follows: a. 20% straight-line b. No residual value C. Full in the year of acquisition and none in the year of disposal