NESTLE Inc., invested its excess cash in equity securities during 2016. The business model for these investments isto profit from trading on price changes.As of December 31, 2016, the equity investment portfolio consisted of the following:Fair ValueInvestmentLj, Inc.Polland Co.Alabang Corp.Quantity1,000 shares2,000 shares2,000 sharesCostP45,000120,000216,000P381,000P63,000126,000180,000P369,000TotalIn the December 31, 2016, statement of financial position, what should be reported as carrying amount of theinvestment?369,000345,000381,000405,000ab.С.d.In the 2016 income statement, what amount should be reported as unrealized gain or loss?Unrealized gain of P12,000Unrealized loss of P12,000Unrealized loss P36,000Unrealized gain of P24,000аb.C.d.

Solution 1: Carrying amount of investment to be reported = fair value of investments = 369,000…

NESTLE Inc., invested its excess cash in equity securities during 2016. The business model for these investmer to profit from trading on price changes. As of December 31, 2016, the equity investment portfolio consisted of the following: Investment Quantity 1,000 shares 2,000 shares 2,000 shares Cost P45,000 120,000 216,000 P381,000 Fair Value Lj, Inc. Polland Co. P63,000 126,000 180,000 P369,000 Alabang Corp. Total In the December 31, 2016, statement of financial position, what should be reported as carrying amount o

NESTLE Inc., invested its excess cash in equity securities during 2016. The business model for these investmer to profit from trading on price changes. As of December 31, 2016, the equity investment portfolio consisted of the following: Investment Quantity 1,000 shares 2,000 shares 2,000 shares Cost P45,000 120,000 216,000 P381,000 Fair Value Lj, Inc. Polland Co. P63,000 126,000 180,000 P369,000 Alabang Corp. Total In the December 31, 2016, statement of financial position, what should be reported as carrying amount o

Financial Reporting, Financial Statement Analysis and Valuation

8th Edition

ISBN:9781285190907

Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Chapter8: Investing Activities

Section: Chapter Questions

Problem 11QE

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