Problem 2 Benshoppe Inc. had the following portfolio of financial assets as of December 31, 2014. All the financial assets were acquired in 2014: Financial Assets Cost Aye Corporation stock, 20.000 shares P 590,000 Bee Inc. Stocks. 40.000 shares 1.100.000 Cee Co 10%, P2M bonds 1,973,000 Dee Corp. Stocks.50.000 shares 2.400.000 Additional Notes: a. Aye Corporation shares were acquired with the intention of generating short term profits from the shares price fluctuation. The company paid P 29.50 per share, which included the P.50 per share broker's fees and commissions. The shares were acquired on February 20, 2014. AP 2 per share cash dividends were received on March 30. These dividends were declared by Aye Corporation. On January 20, 2014 to stockholders as of record date March 1, 2014. b. The company paid P 27.50 per shares, including P0.50 per share broker's fee on the acquisition of Bee, Inc, on March 1, 2014. These shares were acquired for trading purposes. AP 3 per share dividend were received from the said shares on May 3, 2014. These dividends were declared on April 1 to stockholders' as of record date April 20 c. Cee Co. bonds which pay semiannual interest every June 30 and December 31, were acquired on October 1, 2014 at P 1,973,000, when the prevailing interest rate on similar instruments was 12%. The bonds shall mature on December 31, 2016. The company has a business model of holding debt securities for short term profits. d. Dee Corporation stocks were acquired P 48 per share, inclusive of a P 3 per share broker's fees and commission s on June 30, 2014. Dee Corporation has a total of P 200,000 shares outstanding on the same date. The company received P 5 dividends per share from Dee Corporation on December 20, 2014. e. The following were deemed relevant at year end, and no entries had been made yet by the company to reflect any of the following information: Aye Corporation Bee. Incorporation Cee Corporation Dee Corporation Net Income P 1,200,000 P 1,500,000 P 2,000,000 P 2.240,000 2014 Fair Value P 35/share P 25/share 11% P 51/share 7. What is the unrealized holding gains/loss to be reported in the 2014 statement of comprehensive income? a. P 1.948 b. P 51.948 C. P 121,948 d. P 122,750 8. What is the carrying value of investment that should be presented as current assets? a. P 3,665,750 b. P3,543,000 C. P 3,664.948 d. P 2.765,250 9. What is the carrying value of investment that should be presented as non-current assets? a. P 2,280,000 b. P 2,150,000 C. P 2,430,000 d. P 2,550,000 10. What is the total amount that should be recognized in the income statement in relation the investment? a P261,948 b. p 541,948 c. P 571.948 d. P 542,750 11. Assuming the company's business model regarding debt securities has an objective of collecting contractual cash flows, what is the carrying value of investment that should be presented as non-current? a. P 4,394,948 b. P 4,362,390 c. P 4,395,750 d. P 4,360,690 12. Assuming the company's business model regarding debt securities has an objective of collecting contractual cash flows, how much in total should be presented in the income statement in relation to the investments? a P 461,948 b. P 525,750 C.P 537,690 d. P 507,690 Problem 2 Benshoppe Inc. had the following portfolio of financial assets as of December 31, 2014. All the financial assets were acquired in 2014: Financial Assets Cost Aye Corporation stock, 20.000 shares P 590,000 Bee Inc. Stocks. 40.000 shares 1.100.000 Cee Co 10%, P2M bonds 1,973,000 Dee Corp. Stocks.50.000 shares 2.400.000 Additional Notes: a. Aye Corporation shares were acquired with the intention of generating short term profits from the shares price fluctuation. The company paid P 29.50 per share, which included the P.50 per share broker's fees and commissions. The shares were acquired on February 20, 2014. AP 2 per share cash dividends were received on March 30. These dividends were declared by Aye Corporation. On January 20, 2014 to stockholders as of record date March 1, 2014. b. The company paid P 27.50 per shares, including P0.50 per share broker's fee on the acquisition of Bee, Inc, on March 1, 2014. These shares were acquired for trading purposes. AP 3 per share dividend were received from the said shares on May 3, 2014. These dividends were declared on April 1 to stockholders' as of record date April 20 c. Cee Co. bonds which pay semiannual interest every June 30 and December 31, were acquired on October 1, 2014 at P 1,973,000, when the prevailing interest rate on similar instruments was 12%. The bonds shall mature on December 31, 2016. The company has a business model of holding debt securities for short term profits. d. Dee Corporation stocks were acquired P 48 per share, inclusive of a P 3 per share broker's fees and commission s on June 30, 2014. Dee Corporation has a total of P 200,000 shares outstanding on the same date. The company received P 5 dividends per share from Dee Corporation on December 20, 2014. e. The following were deemed relevant at year end, and no entries had been made yet by the company to reflect any of the following information: Aye Corporation Bee. Incorporation Cee Corporation Dee Corporation Net Income P 1,200,000 P 1,500,000 P 2,000,000 P 2.240,000 2014 Fair Value P 35/share P 25/share 11% P 51/share 7. What is the unrealized holding gains/loss to be reported in the 2014 statement of comprehensive income? a. P 1.948 b. P 51.948 C. P 121,948 d. P 122,750 8. What is the carrying value of investment that should be presented as current assets? a. P 3,665,750 b. P3,543,000 C. P 3,664.948 d. P 2.765,250 9. What is the carrying value of investment that should be presented as non-current assets? a. P 2,280,000 b. P 2,150,000 C. P 2,430,000 d. P 2,550,000 10. What is the total amount that should be recognized in the income statement in relation the investment? a P261,948 b. p 541,948 c. P 571.948 d. P 542,750 11. Assuming the company's business model regarding debt securities has an objective of collecting contractual cash flows, what is the carrying value of investment that should be presented as non-current? a. P 4,394,948 b. P 4,362,390 c. P 4,395,750 d. P 4,360,690 12. Assuming the company's business model regarding debt securities has an objective of collecting contractual cash flows, how much in total should be presented in the income statement in relation to the investments? a P 461,948 b. P 525,750 C.P 537,690 d. P 507,690