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Stuart Corporation has the following equity securities during the year 2021: ABC Corporation (200,000 shares) XYZ Corporation (5,000 shares) Cost Fair value (12/31/2021) P1,500,000 P2,800,000
Stuart Corporation has the following equity securities during the year 2021: ABC Corporation (200,000 shares) XYZ Corporation (5,000 shares) Cost Fair value (12/31/2021) P1,500,000 P2,800,000 2,000,000 1,750,000 3,500,000 3,800,000 123 Corporation (10,000 shares) Both the ABC and XYZ shares were all held through profit or loss, while the 123 shares are held through other comprehensive income. Half of the XYZ shares were sold at P250 per share on January 3, 2022. On the other hand, Stuart also held the following debt securities: ABC Corporation bonds, 3,000 pieces at P1,500 each, with stated rate of 10% and market rate of 8%, for 3 years. These bonds were purchased on January 1, 2021 and are selling at 103 by year-end. .XYZ Corporation bonds, 5,000 pieces at P2,500 each, with nominal rate of 7% and effective rate of 9%, for 5 years. These bonds were purchased on January 1, 2021 and are selling at 107 by year-end. The ABC bonds are held at amortized cost while the XYZ bonds are held through profit or loss. Journalize the year-end entries for all these securities. How much will be the total value of the equity securities by year-end, separately by classification? Show the amortization table for the bonds, if applicable. How much will be the total value of the debt securities by year-end, separately by classification
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