Difficult Company acquiredan equity instrument for P3,600,000 on March 31, 2020 to be measured at fair value through other comprehensive income. The direct costs incurred amounted to P630,000. On December 31, 2020, the fair value of the instrument was P4,950,000 and the transaction costs that would be incurred on the sale of the investment were estimated at P540,000. What amount of unrealized gain or loss on these securities should be reported in other comprehensive income for the year 2020?

Difficult Company acquiredan equity instrument for P3,600,000 on March 31, 2020 to be measured at fair value through other comprehensive income. The direct costs incurred amounted to P630,000. On December 31, 2020, the fair value of the instrument was P4,950,000 and the transaction costs that would be incurred on the sale of the investment were estimated at P540,000. What amount of unrealized gain or loss on these securities should be reported in other comprehensive income for the year 2020?

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter13: Investments And Long-term Receivables

Section: Chapter Questions

Problem 2MC: During 2021, Anthony Company purchased debt securities as a long-term investment and classified them...

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