Question: 2 ProblemsAcct Intermediate 1 On January 1, 2022, an entity purchased the following trading equity securities: Investment A at P1M, Investment B at P2M and

2 ProblemsAcct Intermediate 1

On January 1, 2022, an entity purchased the following "trading" equity securities: Investment A at P1M, Investment B at P2M and Investment C at P3M. Market values on December 31, 2022 were as follows: Investment A at P1.2M, Investment B at P1.5M and Investment C at P3.1M. On July 1, 2023 the entity sold Security A for P1,400,000. This problem has two questions: - unrealized gain or loss in 2022 gain on sale in 2023 What amount should be reported as gain on sale of trading securities in the 2023 income statement? O 500,000 O 300,000 O 200,000 O 400,000 On January 1, 2022, an entity purchased nontrading equity securities for P6,000,000. The investment was irrevocably designated to be measured at FVOCI. The company also paid P360,000 in the form of transaction costs. The securities had a market value of P5,400,000 on December 31, 2022 and P6,600,000 on December 31, 2023. This problem has two questions: Unrealized gain or loss to be reported in the 2022 OCI? - Cumulative unrealized gain or loss to be reported in the 2023 statement of changes in equity What amount of cumulative unrealized gain in OCI should be reported in the 2023 statement of changes in equity? 240,000 600,000 1,200,000 O o

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