INVESTMENT IN EQUITY (FV)

1. On December 31, 2018, Ott Company had investments in equity securities at FVTPL as follows:
Cost Market
Mat 1,000,000 1,300,000
Kem 900,000 1,100,000
Fen 1,100,000 900,000
Ott’s December 31, 2018 balance sheet should report the equity securities at FVTPL at:
Unrealized gain or loss to be presented at Profit or Loss:
Unrealized gain or loss to be presented at OCI:

2. Data regarding Bright Company’s equity securities at FVTPL follow:

Cost Market
December 31, 2018 5,000,000 4,600,000
December 31, 2019 5,000,000 5,800,000

The income statement for 2019 should report unrealized gain or loss on these securities at:

3. Data regarding Oval Company’s FVTOCI equity securities follow:

Cost Market
December 31, 2018 4,000,000 3,500,000
December 31, 2019 4,000,000 3,200,000

The stockholders’ equity section of the December 31, 2019 balance sheet should report unrealized gain or
loss on these securities at

4. King Company began operations on January 1, 2019. The following information pertains to the company’s
December 31, 2019 portfolio of equity securities:
FVTPL FVTOCI
Aggregate cost 4,000,000 6,000,000
Aggregate market value 3,700,000 5,500,000
Aggregate lower of cost or market
value applied to each security 3,500,000 5,300,000
What amount should Royce report as gain or loss on these securities in its 2019 income statement?

5. Anne Company had investments in equity securities at FVTPL costing P6,600,000 which Anne intends to sell
in the near term. On December 31, 2019, Anne, having enough cash, decided to hold on to the said securities
as “FVTOCI”. The market value of the securities was P6,200,000 on December 31, 2018 and P6,000,000 on
December 31, 2019. In its 2019 statement of stockholders’ equity, Anne should report realized loss on these
securities at:

Items 6 and 7:

Tuba Company provides the following information about the cost and market value of its equity securities
at FVTPL at the end of 2018 and 2019:
Security Cost Market value Market value
Dec. 31, 2018 Dec. 31, 2019
1 600,000 540,000 560,000
2 460,000 500,000 600,000
3 1,040,000 1,100,000 1,000,000
4 700,000 840,000 760,000
5 500,000 540,000 600,000
6 300,000 360,000 380,000
7 600,000 520,000 700,000
On December 31, 2019, Security 3 was sold for P1,000,000.

6. How much is the realized gain or loss on the sale of Security 3?

7. The amount of unrealized gain on these securities to be shown in the 2019 income statement should be:

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