An examination of the general ledger account of HOPE COMPANY discloses the following trading

securities:

Debit/(Credit)
Jan. 10 Purchased 5,000
shares of Piltel common at
P20 per share P100,000

Mar 15 Purchased 2,000 of

ABS-CBN common at P15
per share P30,000

Oct 5 Purchased additional

2,000 shares of Piltel common P36,000

Nov 4 Sold 2,000 stock rights . (P3,000)

P 163,000
Additional information:

1.) The company received stock rights from Piltel common when the market values of Piltel common
stock and stock rights were P19 and P1 respectively. Each right entitles the holder to acquire 1
additional share of common stock for P18 per share on or before December 31, 2019.

2.)The company exercised its rights to acquire 2,000 additional Piltel common shares on October 5,
2019.

3.)On November 4, HOPE COMPANY sold 2,000 stock rights at P1.50 each.

4.)At the end of the year, shares were quoted in the stock exchange as follows:

Piltel Common P 18
ABS-CBN common P 14

Questions:
1.) Ending balance per audit of Piltel common at year-end is:

2.) Ending balance per audit of ABS-CBN common at year-end is:

3.) Ending balance of investment at year-end is:

4.) Allowance for market decline in value of investment at year-end is:

5.) Gain or loss on stock rights transaction is:

6.) Stock rights at December 31, 2007 is: