Problem 1 KAYA CO. is an active investor of financial instruments. During audit, the following information were noted: 1. KAYA CO. has trading securities in AYAW CO. The investment was acquired on December 30, 2020 at P6,000,000.00. P500,000.00 directly attributed to the acquisition is included in the purchase price. 2. KAYA CO. has 20% ownership on TIBAY CO. It was noted that this investment was acquired at P2,000,000.00 on January 1, 2021. 3. KAYA CO. bought a bond investment from UMASA CO. The bond face value is P3,000,000.00 and was acquired at 96. It is noted that bond rate is 3%. The instrument is irrevocably designated and measured at FV. The instrument was acquired on December 31, 2020, interest is due annually and principal is to be paid in full on December 31, 2023 During 2021 the following transactions were noted: 1. On February 2021, KAYA CO. sold the entirety of its trading securities investment in AYAW CO. at P4,500,000.00 2. Of P20,000,000.00 net assets of ASA CO. 4,000,000.00 was acquired by KAYA CO. for P5,000,000.00 It is noted that the assets of ASA CO. were fairly stated at acquisition date, October 1, 2021. 3. At year-ended on December 31, 2021, the following events were evidently noted. A TIBAY CO. declared loss from its operation at P5,000,000.00 and but declared and paid dividends to KAYA Co. amounting to P200,000.00 B. Fair Value of trading securties investment in AYAW CO. is at P5,500,000.00 C. Fair Value of bond investment in UMASA CO. is at P3,000,000.00 D. ASA CO. earned P10,000,000.00 for the year 2021, and declared dividend of P5,000,000.00 on 12/30/2021 E It was noted that goodwill of KAYA CO. is evidently impaired. Determine the following: 1. Carrying amount of investments in equity securities as of December 31, 2021. 2. Interest income for the year ended December 31, 2021. 3. Gain/loss from sale of investment for the year ended December 31, 2021. 4. Net Investment Income for the year ended December 31, 2021. 5. Total unrealized gain loss on investment securities to be reported in the profitloss for the year ended December 31, 2021 6. Unrealized gain/loss to be included in the other comprehensive income. 7. Carrying amount of investment in associate as of December 31, 2021. 8. Carrying amount of goodwill in relation to ASA CO. as of December 31, 2021. Problem 1 KAYA CO. is an active investor of financial instruments. During audit, the following information were noted: 1. KAYA CO. has trading securities in AYAW CO. The investment was acquired on December 30, 2020 at P6,000,000.00. P500,000.00 directly attributed to the acquisition is included in the purchase price. 2. KAYA CO. has 20% ownership on TIBAY CO. It was noted that this investment was acquired at P2,000,000.00 on January 1, 2021. 3. KAYA CO. bought a bond investment from UMASA CO. The bond face value is P3,000,000.00 and was acquired at 96. It is noted that bond rate is 3%. The instrument is irrevocably designated and measured at FV. The instrument was acquired on December 31, 2020, interest is due annually and principal is to be paid in full on December 31, 2023 During 2021 the following transactions were noted: 1. On February 2021, KAYA CO. sold the entirety of its trading securities investment in AYAW CO. at P4,500,000.00 2. Of P20,000,000.00 net assets of ASA CO. 4,000,000.00 was acquired by KAYA CO. for P5,000,000.00 It is noted that the assets of ASA CO. were fairly stated at acquisition date, October 1, 2021. 3. At year-ended on December 31, 2021, the following events were evidently noted. A TIBAY CO. declared loss from its operation at P5,000,000.00 and but declared and paid dividends to KAYA Co. amounting to P200,000.00 B. Fair Value of trading securties investment in AYAW CO. is at P5,500,000.00 C. Fair Value of bond investment in UMASA CO. is at P3,000,000.00 D. ASA CO. earned P10,000,000.00 for the year 2021, and declared dividend of P5,000,000.00 on 12/30/2021 E It was noted that goodwill of KAYA CO. is evidently impaired. Determine the following: 1. Carrying amount of investments in equity securities as of December 31, 2021. 2. Interest income for the year ended December 31, 2021. 3. Gain/loss from sale of investment for the year ended December 31, 2021. 4. Net Investment Income for the year ended December 31, 2021. 5. Total unrealized gain loss on investment securities to be reported in the profitloss for the year ended December 31, 2021 6. Unrealized gain/loss to be included in the other comprehensive income. 7. Carrying amount of investment in associate as of December 31, 2021. 8. Carrying amount of goodwill in relation to ASA CO. as of December 31, 2021