PROBLEM 1. Given below is a list of securities and other assets that may qualify as investments:

Equity securities of another company where no control

nor significant influence exist. The company elected

to report gains or losses in the profits/ losses.P100,000

Equity securities of another company where no control

nor significant influence exist. The company elected

to report gains or losses in the other comprehensive

income/losses 150,000

20% Equity securities of another company quoted in an active market 500,000

51% Equity securities of another company quoted in an active market1,400,000

Equity securities of the company quoted in an active market

required with an intention of reissuance in latter period for

short-term profit 500,000

Debt security of another company quoted in an active market.

Business model of the company has an objective to hold

debt securities for short-term profits 100,000

Debt security of another company quoted in an active market.

Business model of the company has an objective of

collecting contractual cash flows from the bonds

which are primarily in the form of interests and principal 500,000

Real property held for resale in the ordinary course of business 500,000

Real property held for speculation purposes 700,000

Real property held as a current factory site1,000,000

Real property of a manufacturing business being leased out

to another party under operating lease 900,000

Land held for undetermined future use 800,000

Land held to be used as a future plant site 400,000

Real property being developed as an investment property 300,000

Requirements:

1.How much from the list above is to be categorized as financial asset at fair value through profits or losses?

a.0

b.100,000

c.200,000

d.500,000

2.How from the list above is to be categorized as financial asset at fair value through other comprehensive income?

a.150,000

b.180,000

c.200,000

d.350,000

3.How much from the list above is to be categorized as investment at amortized cost?

a.0

b.500,000

c.600,000

d.750,000

4.How much from the list above is to be categorized as investment in associate?

a.0

b.500,000

c.600,000

d.700,000

5.How much from the list above is to be categorized as investment in subsidiary?

a.0

b.1,000,000

c.1,200,000

d.1,400,000

6.How much from the list above is to be categorized as investment property?

a.2,400,000

b.2,700,000

c.2,800,000

d. 3,100,000