This problem has 2 questions. SUKON Company acquired equity securities at the beginning of 2020. SUKON Company provided you the following information:

AKO shares were acquired and were designated as financial asset at fair value through OCI. The shares were acquired at P52.50 per share which included a P2.50 per share transaction cost. Half of the AKO shares were sold at P58 per share on July 1, 2021.

14. How much is the cumulative balance of unrealized gain/loss transferred to Retained Earnings upon sale of investment?

a. 125,000 b. 400,000 c. 150,000 d. 275,000

12.

Security

No. of shares

Acquisition Cost

AKO Co. shares

100,000 shares

P5,250,000

Fair value, Dec. 31, 2020

Fair value, Dec. 31, 2021

P55/share

P62/share15. How much is the carrying value of the Investment on December 31, 2021? a. 3,100,000

b. 2,900,000

c. 2,750,000

d. none of the choices