MODULE 4

GROUP 3
ASSESSMENT
Hernando, Angel Marie Anne
Pablo, Christine Jessica V.
Raña, John Vincent F.
Salumbides, Angel Jesaiah L.
SLIDESMANIA
 11. Pacman Company purchased 1,000 shares of RJ Company ordinary shares at
P540/share. Pacman also paid broker's commission of P10,000 in relation to the
said investment. The securities are designated as at fair value through profit or
s. We
s. We can
can build
build these
these lessons
lessons together
together and
and II am
am happy
happy to
to model,
model, co-teach,
co-teach, observe,
observe, and/or
and/or provide
provide feedback
feedback to
to help
help you
you
succeed! loss. At the end of 2019, the securities had total market value of P565,000. At
succeed!
December 31, 2020 the total market value of the equity securities is P 590,000.
The holding gain or loss that would be reported by Pacman on its income
statement for the year 2020 is ₱25,000 .
SLIDESMANIA
 s. We
s. We can
can build
build these
these lessons
lessons together
together and
and II am
am happy
happy to
to model,
model, co-teach,
co-teach, observe,
observe, and/or
and/or provide
provide feedback
feedback to
to help
help you
you
succeed!
succeed!
SLIDESMANIA
 12. On December 01, 2020, Matiyaga Company purchased 1,000 shares of
Masipag Corp. P100 par ordinary shares (5% interest in voting rights) at P175 per
share. Matiyaga also paid transaction cost of P3,500. The shares were designated
s. We
s. We can
can build
build these
these lessons
lessons together
together and
and II am
am happy
happy to
to model,
model, co-teach,
co-teach, observe,
observe, and/or
and/or provide
provide feedback
feedback to
to help
help you
you
succeed! as equity investments at fair value through other comprehensive income. On
succeed!
December 31, 2020, Masipag ordinary shares were quoted at P200 per share.
What is the carrying value of the equity investment of Matiyaga at December 31,
2019? 0 .
SLIDESMANIA
 ● The anwser is 0 since the equity investment of 1,000 ordinary
s. We
s. We can buildshares
can build these were
these lessons
lessons purchased
together
together and II am
and on toto
am happy
happy December 1,observe,
model, co-teach,
model, co-teach, 2020,and/or
observe, thusprovide
and/or therefeedback
provide is no toto help
feedback help you
you
succeed!
succeed!
existence of investment on December 31, 2019
SLIDESMANIA
 13. On September 11, 2020, Ali Company purchased for P7,000,000
the assets and will assumed all the liabilities of Iris Corporation. As
s. We
s. can of
We can this
build
build thesedate,
these lessonsthe
lessons book
together
together and value
and II am and
am happy
happy fair market
to model,
to model, valueand/or
co-teach, observe,
co-teach, observe, of Iris
and/or assets
provide
provide areto
feedback
feedback to help
help you
you
succeed!
succeed!
P10,000,000 and P11,500,000 respectively. Iris has current liabilities
of P2,000,000 and noncurrent liabilities of P3,250,000 respectively.
How much goodwill is to be recorded by Ali? ₱750,000
SLIDESMANIA
 s. We
s. We can
can build
build these
these lessons
lessons together
together and
and II am
am happy
happy to
to model,
model, co-teach,
co-teach, observe,
observe, and/or
and/or provide
provide feedback
feedback to
to help
help you
you
succeed!
succeed!
SLIDESMANIA
 s. We
s. We can
can build
build these
these lessons
lessons together
together and
and II am
am happy
happy to
to model,
model, co-teach,
co-teach, observe,
observe, and/or
and/or provide
provide feedback
feedback to
to help
help you
you
succeed!
succeed!
SLIDESMANIA
 s. We
s. We can
can build
build these
these lessons
lessons together
together and
and II am
am happy
happy to
to model,
model, co-teach,
co-teach, observe,
observe, and/or
and/or provide
provide feedback
feedback to
to help
help you
you
succeed!
succeed!
SLIDESMANIA
 s. We
s. We can
can build
build these
these lessons
lessons together
together and
and II am
am happy
happy to
to model,
model, co-teach,
co-teach, observe,
observe, and/or
and/or provide
provide feedback
feedback to
to help
help you
you
succeed!
succeed!
SLIDESMANIA
 s. We
s. We can
can build
build these
these lessons
lessons together
together and
and II am
am happy
happy to
to model,
model, co-teach,
co-teach, observe,
observe, and/or
and/or provide
provide feedback
feedback to
to help
help you
you
succeed!
succeed!
SLIDESMANIA