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Problem 2 NSW Corp. invested its excess cash in non-trading equity securities during 2016. On initial recognition, the entity made an irrevocable election to present

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Problem 2 NSW Corp. invested its excess cash in non-trading equity securities during 2016. On initial recognition, the entity made an irrevocable election to present its securities at fair value through other comprehensive income (FVOCI). As of December 31, 2016, the company's securities portfolio consisted of the following: Investe: Company Shares Cost Market Value Kelly, Inc 30,000 P 450.000 425.000 Eloy Corp. 60,000 1,500.000 1,610.000 Yogi Enterprises 60,000 2,160.000 2,300.000 Totals 34,110.000 P4.335.000 During the year 2017. NSW sold 60,000 shares of Eloy Corp. for P1,700,000 and purchased 60,000 additional shares of Kelly, Inc. and 30,000 shares of Kongga Company On December 31, 2017, NSW's portfolio of non-trading equity securities comprised the following: Investee Company Shares Cost Market Value Kelly Inc 30,000 P 450.000 500.000 Kelly Inc 50,000 1,300,000 1,450.000 Kongga Company 30,000 520.000 480 000 Yogi Enterprises 60,000 2.160.000 700.000 Totals 34,430,000 83,130.000 During the year 2018. NSW sold all the Kelly, Inc. shares for P2 300,000 and 15.000 shares of Kongge Company at a loss of P90,000. On December 31, 2018, NSW's portfolio of non-trading equity securities consisted of the following Investee Company Shares Cost Market Value Kongga Company 15,000 P 260.000 180.000 Yogi Enterprises 50,000 2.160.000 4,200.000 Totals P2,420.000 P4,380.000 1. What is the total amount to be credited to retained earnings as a result of the sale of Bloy Corp. securities in 2017? P200,00 b. P110,000 P90.000 d. P20.000 2. What unrealized loss on the remaining financial assets should be reported in the 2017 statement of comprehensive income as component of other comprehensive income? P1 600,000 b. P1 640,000 P1 415,000 d. P1 300,000 3. What cumulative amount of unrealized loss should be reported as component of other comprehensive income in the statement of changes in equity on December 31, 2017? P1 415,000 b. P1 300,000 P335,000 P225,000 What unrealized gain on the remaining financial assets should be reported in the 2018 statement of comprehensive income as component of other comprehensive income? P1 950,000 b. P60.000 P3 440,000 d. P3 500,000 What cumulative amount of unrealized gain should be reported as component of other comprehensive income in the statement of changes in equity on December 31, 2018? P1 505,000 b. P1 950,000 P1 430,000 d. P3 440,000

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