Question

On January 1, 2022, Moises Corp. acquired ordinary shares (par value, P50) of Ezekiel Corporation for a total consideration of P3,600,000 which includes P36,000 transaction costs. These shares were acquired for short-term trading purposes. On December 31, 2022, Ezekiel Corporation ordinary shares were selling at P58 per share. On March 31, 2023, Ezekiel Corporation issued 25% ordinary share dividends. The market price of the Ezekiel Corporation ordinary shares on this date was P62 per share. On October 29, 2023, Moises sold 30,000 of its Ezekiel Corporation ordinary shares at P57 per share. The market price of Ezekiel Corporation ordinary shares on December 31, 2023 is P52 per share. 38. What amount of unrealized gain (loss) on fair value change shall be reported in profit or loss for 2022? a. 84,000 b. (84,000) c. 120,000 d. (120,000) 39. What amount of dividend income shall be recognized during 2023? a. Zero b. 180,000 c. 750,000 d. 930,000 40. What amount of gain (loss) on sale shall be reported for 2023? a. 30,000 b. (30,000) c. 318,000 d. (318,000) 41. At what amount should the investment be reported on December 31, 2023? a. 1,560,000 b. 1,740,000 c. 2,088,000 d. 2,340,000 42. What amount of unrealized gain (loss) on fair value change shall be reported in profit or loss for 2023? a. 252,000 b. (252,000) c. 306,000 d. (306,000)

          On January 1, 2022, Moises Corp. acquired ordinary shares (par value, P50) of Ezekiel Corporation for a total consideration of P3,600,000 which includes P36,000 transaction costs. These shares were acquired for short-term trading purposes. On December 31, 2022, Ezekiel Corporation ordinary shares were selling at P58 per share.
On March 31, 2023, Ezekiel Corporation issued 25% ordinary share dividends. The market price of the Ezekiel Corporation ordinary shares on this date was P62 per share. On October 29, 2023, Moises sold 30,000 of its Ezekiel Corporation ordinary shares at P57 per share.
The market price of Ezekiel Corporation ordinary shares on December 31, 2023 is P52 per share.
38. What amount of unrealized gain (loss) on fair value change shall be reported in profit or loss for 2022?
a. 84,000
b. (84,000)
c. 120,000
d. (120,000)
39. What amount of dividend income shall be recognized during 2023?
a. Zero
b. 180,000
c. 750,000
d. 930,000
40. What amount of gain (loss) on sale shall be reported for 2023?
a. 30,000
b. (30,000)
c. 318,000
d. (318,000)
41. At what amount should the investment be reported on December 31, 2023?
a. 1,560,000
b. 1,740,000
c. 2,088,000
d. 2,340,000
42. What amount of unrealized gain (loss) on fair value change shall be reported in profit or loss for 2023?
a. 252,000
b. (252,000)
c. 306,000
d. (306,000)

On January 1, 2022, Moises Corp. acquired ordinary shares (par value, P50) of Ezekiel Corporation for a total consideration of P3,600,000 which includes P36,000 transaction costs. These shares were acquired for short-term trading purposes. On December 31, 2022, Ezekiel Corporation ordinary shares were selling at P58 per share.
On March 31, 2023, Ezekiel Corporation issued 25% ordinary share dividends. The market price of the Ezekiel Corporation ordinary shares on this date was P62 per share. On October 29, 2023, Moises sold 30,000 of its Ezekiel Corporation ordinary shares at P57 per share.
The market price of Ezekiel Corporation ordinary shares on December 31, 2023 is P52 per share.
38. What amount of unrealized gain (loss) on fair value change shall be reported in profit or loss for 2022?
a. 84,000
b. (84,000)
c. 120,000
d. (120,000)
39. What amount of dividend income shall be recognized during 2023?
a. Zero
b. 180,000
c. 750,000
d. 930,000
40. What amount of gain (loss) on sale shall be reported for 2023?
a. 30,000
b. (30,000)
c. 318,000
d. (318,000)
41. At what amount should the investment be reported on December 31, 2023?
a. 1,560,000
b. 1,740,000
c. 2,088,000
d. 2,340,000
42. What amount of unrealized gain (loss) on fair value change shall be reported in profit or loss for 2023?
a. 252,000
b. (252,000)
c. 306,000
d. (306,000)

Added by Sandra G.

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