PROBLEMS PROBLEM NO.1 Mexico Inc. carries the following marketable equity securities on its books at December 31, 2020 and 2021. All securities were purchased during 2020. Transaction costs paid on each acquisition is 1% of the purchase price. FA at FVTPL: C Company P Company A Company Total FA at FVTOCI: M Company E Company Total Fair value Purchase price P 300,000 12/31/20 12/31/21 P 260,000 300,000 P 310,000 250,000 700,000 P1,250,000 Purchase price P4,100,000 1,000,000 P5,100,000 660,000 P1,220,000 290,000 640,000 P1,240,000 Fair value 12/31/21 P3,830,000 12/31/20 P3,800,000 1,200,000 P5,000,000 1,240,000 P5,070,000 On December 31, 2021, Mexico transferred its investment in C Company to FA at FVTOCI while investment in E Company to FA at FVTPL. QUESTIONS: Based on the above and the result of your audit, answer the following: 11. The amount to be recognized as fair value adjustment loss in the entity's 2020 profit or loss is a. P30,000 b. P42,500 C. P151,000 d. P181,000 12. The amount to be recognized as fair value adjustment loss in the entity's 20200CI is a. P100,000 b. P142,500 C. P151,000 d. P181,000