1.

What amount of unrealized gain

on these securities should be
reported in the 201B income
statement? P31,050
06 Activity 1

1. What amount of unrealized gain on these securities should be reported in the 201B income
statement? P31,050

Carrying Value Fair Value

Sotto Co. 570,000 604,400
Baguino Co. 84,600 81,250
P654,600 P685,650
Unrealized gain (P685,650-
P654,600) P31,050
Carrying value Fair Value
Sotto Co. 570,000 604,400
Baguino Co. 84,600 81,250
P654,600 685,650

Unrealized gain (685,650 - 654,600) P31,050

2. What is the gain or loss on the sale of Fonte Co. ordinary shares on March 1, 201B? P40,500

Net proceeds (P32 x15,000 = 480,000-7,500) P472,500

 Carrying Value 432,000

Gain on sale of Fonte Co. P41,500

What amount should be

reported as trading securities in
Cathy’s financial position statement
on
December 31, 201B? P685,650
3. What amount should be reported as trading securities in Cathy’s financial position statement on
December 31, 201B? P685,650

P685,65
Trading securities at fair value (604,400 + 81,250)
0