L-NU AA-23-02-01-18

LYCEUM-NORTHWESTERN UNIVERSITY
Tapuac District, Dagupan City

COLLEGE OF BUSINESS EDUCATION

FINALS EXAMINATION – ACCTG 4 Accounting for Business Combination

1st Semester, AY 2020 – 2021
Prepared by: Amie Jane R. Miranda, CPA

Name:_____________________________________ Score:____________________

Student No.: _______________ Year/Section:___________ Date of Exam: ____________

I. MULTIPLE CHOICE. Choose the best answer from the choices and encircle your answer. Strictly “NO
ERASURES”.

Siargao Company set up a branch in a province. The entity and its branch provided the following
data for the second year of branch operation:

Home Office Branch

Sales revenue to outside customer 1,000,000 500,000

Beginning inventory 50,000 30,000
Purchases from outside supplier 400,000 100,000
Shipment to branch 200,000
Shipment from home office 250,000
Ending inventory 80,000 50,000
Operating expenses 150,000 40,000

 The home office to branch markup based on cost is 25% this year and last year.

 20% of the beginning inventory of the branch came from outside supplier.

 24% of the ending inventory of the branch came from the last year’s shipment from the home
office while 50% of the ending inventory of the branch came from current year’s shipment from
the home office.

1. What is the net income reported by the branch in its separate income statement for the current
year?

a. 130,000
b. 124,000
c. 114,000
d. 95,000

2. What is the ending inventory to be reported by the entity in its combined statement of financial
position?

a. 128,000
b. 115,000
c. 130,000
d. 122,600

3. What is the overstatement in the cost of goods sold reported by the branch in its separate
income statement for the current year?

a. 54,000
b. 50,000
c. 52,000
d. 47,400

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 The home office in Quezon City ships and bills merchandise to its provincial branch at cost. The
branch carries its own accounts receivable and makes its own collections. The branch also pays
its expenses. The branch transactions for 2018 are reflected in the following information:

Cash 20,000
Accounts receivable 80,000
Home Office 180,000
Shipments from Home Office 250,000
Sales 225,500
Expenses 55,500
December 31, 2018 inventory 65,000

4. What is the balance of the Investment in Branch account in the home office book?

a. 180,000
b. 195,000
c. 165,000
d. 175,000

Coffee Company decided to open a branch in Manila. Shipments of merchandise to the branch
totaled P54,000 which included a 20% markup on cost. All accounting records are kept at the
home office. The branch submitted the following report summarizing the operations for the year
ended December 31, 2018:

Sales on account 74,000

Sales on cash basis 22,000
Collections of accounts receivable 60,000
Expenses paid 38,000
Expenses unpaid 12,000
Purchase of merchandise for cash 26,000
Inventory on hand, December 31; 80% from home office 30,000
Remittance to home office 55,000

5. What is the branch inventory on December 31, 2018 at cost?

a. 25,000
b. 20,000
c. 26,000
d. 10,000

6. What is the branch net income for the current year?

a. 1,000
b. 4,000
c. 800
d. 500

Entity A acquired the net assets of Entity B by issuing 10,000 ordinary shares with par value of P10 and
bonds payable with face amount of P500,000. The bonds are classified as financial liability at amortized
cost.

At the time of acquisition, the ordinary shares are publicly quoted at P20 per share. On the other hand,
the bonds payable are trading at 110.

Entity A paid P10,000 share issuance costs and P20,000 bond issue costs. Entity A also paid P40,000
acquisition related costs and P30,000 indirect costs of business combination.

Before the date of acquisition, Entity A and Entity B reported the following data:

Entity A Entity B

Current assets 1,000,000 500,000

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 Noncurrent assets 2,000,000 1,000,000
Current liabilities 200,000 400,000
Noncurrent liabilities 300,000 500,000
Ordinary shares 500,000 200,000
Share premium 1,200,000 300,000
Retained earnings 800,000 100,000

At the time of acquisition, the current assets of Entity A have fair value of P1,200,000 while the
noncurrent assets of Entity B have fair value of P1,300,000. On the same date, the current liabilities of
Entity B have fair value of P600,000 while the noncurrent liabilities of Entity A have fair value of
P500,000.

7. What is the goodwill or gain on bargain purchase arising from business combination?

a. 50,000 goodwill
b. 150,000 gain on bargain purchase
c. 120,000 goodwill
d. 70,000 gain on bargain purchase

8. What total amount should be expensed as incurred at the time of business combination?

a. 20,000
b. 70,000
c. 30,000
d. 50,000

9. What is Entity A’s amount of total assets after the business combination?

a. 4,520,000
b. 4,810,000
c. 4,750,000
d. 4,440,000

10. What is Entity A’s amount of total liabilities after the business combination?

A. 2,240,000
B. 2,510,000
C. 2,320,000
D. 2,130,000

Entity A acquired 80,000 out of 100,000 outstanding ordinary shares of Entity B which enabled the
former to obtain control of the latter at an acquisition price of P1,000,000. Entity A paid P100,000
acquisition related costs and P50,000 indirect costs of business combination.

At the date of acquisition, the net assets of Entity B are reported at P1,600,000. An asset of Entity B is
overvalued by P60,000 while one liability is undervalued by P40,000.

11. What is the initial measurement of noncontrolling interest in net assets in the consolidated
statement of financial position?

a. 320,000
b. 300,000
c. 250,000
d. 316,000

12. What is the goodwill or gain on bargain purchase arising from business combination?

a. 250,000 gain on bargain purchase

b. 150,000 gain on bargain purchase
c. 50,000 goodwill
d. 200,000 gain on bargain purchase

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On January 1, 2018, Entity A acquired 30,000 out of 100,000 outstanding ordinary shares of Entity B for
P90,000 or 30% interest. For the six months ended June 30, 2018, Entity B reported net income of
P40,000.

On July 1, 2018, Entity A acquired additional 60,000 ordinary shares of Entity B or 60% interest at a price
of P4 per share or total cost of P240,000. Entity A paid P20,000 acquisition related costs and P10,000
indirect costs of business combination.

The acquisition price per share of the additional shares clearly reflected the fair value of the existing
interest of Entity A in Entity B. It is the policy of Entity A to initially measure the noncontrolling interest
in net assets of the acquiree at fair value. The fair value of the noncontrolling interest in net assets of
the acquiree is reliably measured at P50,000.

At the acquisition date, the net assets of Entity B were reported at P400,000. An asset of Entity B was
overvalued by P50,000 while one liability wass overvalued by P30,000.

13. What is the gain on remeasurement of the existing Investment in Entity B as a result of step
acquisition?

a. 18,000
b. 30,000
c. 24,000
d. 12,000

14. What is the goodwill or gain on bargain purchase as a result of the business combination?

a. 18,000 goodwill
b. 20,000 gain on bargain purchase
c. 24,000 goodwill
d. 30,000 goodwill

On January 1, 2018, Entity A acquired 70% of outstanding ordinary shares of Entity B at a price of
P210,000. On the same date, the net assets of Entity B were reported at P260,000. On January 1,
2018 Entity A reported retained earnings of P2,000,000 while Entity B reported retained earnings of
P200,000.

All the assets and liabilities of Entity B are fairly valued except machinery which is undervalued by
P80,000 and inventory which is overvalued by P10,000. The said machinery has remaining useful life
of four years while 40% of the said inventory remained unsold at the end of 2018.

For the year ended December 31, 2018, Entity A reported net income of P1,000,000 and declared
dividends of P200,000 in the separate financial statements while Entity B reported net income of
P150,000 and declared dividends of P20,000 in the separate financial statements.

Entity A accounted the investment in Entity B using cost method in the separate financial
statements.

15. What is the noncontrolling interest in net assets on December 31, 2018?

A. 124,800
B. 130,200
C. 126,000
D. 133,800

16. What is the consolidated net income attributable to parent shareholders for the year ended
December 31, 2018?

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 a. 1,102,200
b. 1,162,200
c. 1,141,200
d. 1,095,200

17. What is the amount of consolidated retained earnings on December 31, 2018?

a. 3,012,200
b. 2,991,200
c. 2,952,200
d. 2,945,200

On January 1, 2019, Entity A acquired 60% of outstanding ordinary shares of Entity B at a gain on bargain
purchase of P40,000. For the year ended December 31, 2020, Entity A and Entity B reported sales
revenue of P2,000,000 and P1,000,000 in their respective separate income statements. At the same
year, Entity A and Entity B reported cost of goods sold of P1,200,000 and P700,000 in their respective
separate income statements.

During 2019, Entity A sold inventory to Entity B at a selling price of P280,000 with gross profit rate of
40% based on cost. On the other hand, Entity B sold inventory to Entity A at a selling price of P400,000
with gross profit rate of 30% based on sales during 2020.

On December 31, 2019, 25% of the goods coming from Entity A remained in Entity B’s inventory but all
were eventually sold to third persons during 2020. As of December 31, 2020, 40% of the goods coming
from Entity B were eventually sold to third persons.

For the year ended December 31, 2020, Entity A reported net income of P500,000 while Entity B
reported net income of P200,000 and distributed dividends of P50,000. Entity A accounted for its
inventory in Entity B using cost method in its separate financial statements.

18. What is the consolidated sales revenue for the year ended December 31, 2020?

a. 2,600,000
b. 2,320,000
c. 3,000,000
d. 2,720,000

19. What is the consolidated gross profit for the year ended December 31, 2020?

a. 1,120,000
b. 1,048,000
c. 1,028,000
d. 1,152,000

20. What is the noncontrolling interest in net income for the year ended December 31, 2020?

a. 100,800
b. 59,200
c. 51,200
d. 88,000

21. What is the consolidated net income attributable to parent’s shareholders for the year ended
December 31, 2020?

a. 766,800
b. 596,800
c. 606,800
d. 626,800

On January 1, 2019, Entity A acquired 80% of outstanding ordinary shares of Entity B at a gain on bargain
purchase of P180,000. The following intercompany transactions occurred for between the two entities:

 On January 1, 2019, Entity B sold a land to Entity A with a cost of P1,000,000 at a selling price of
P1,100,000. The land was eventually sold by Entity A to third persons during 2020.

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 On January 1, 2019, Entity A sold a white machinery to Entity B with a cost of P200,000 and
accumulated depreciation of P40,000 at a selling price of P180,000. The machinery is already 4 years
old at the date of sale. The residual value of white machinery is immaterial.

 On July 1, 2020, Entity B sold a black machinery to Entity A at with a cost of P270,000 and
accumulated depreciation of P180,000 at a selling price of P60,000. The machinery is already 6 years
old at the date of sale. The residual value of black machinery is immaterial.

For the year ended December 31, 2020, Entity A reported net income of P800,000 while Entity B
reported net income of P500,000 and distributed dividends of P150,000. Entity A accounted for its
inventory in Entity B using cost method in its separate financial statements.

22. What is the consolidated depreciation expense of machinery for 2020?

a. 40,000
b. 55,000
c. 61,667
d. 42,333

23. What is the consolidated carrying amount of machinery on December 31, 2020?

a. 225,000
b. 215,000
c. 200,000
d. 210,000

24. What is the noncontrolling interest in net income for 2020?

a. 124,000
b. 105,000
c. 125,000
d. 104,000

25. What is the consolidated net income attributable to parent shareholders for 2020?

a. 1,538,750
b. 1,518,750
c. 1,398,750
d. 1,418,750

On January 1, 2020, Entity A acquired 90% of outstanding ordinary shares of Entity B at a price of
P900,000. Entity A paid P20,000 costs related to acquisition of shares.

At the acquisition date, the net assets of Entity B were reported at P950,000. All the assets of Entity B
are properly valued except for a machinery which is undervalued by P150,000. The machinery has a
remaining useful life of 5 years.

For the year ended December 31, 2020, Entity B reported net income of P200,000 and declared
dividends in the amount of P30,000.

The fair value of Investment in Entity B on December 31, 2020 is P1,000,000 while the cost of disposal is
5%.

Entity A voluntarily prepared its separate financial statements.

26. If Entity A elects cost method to account its Investment in Entity B in its separate financial
statements, what is the carrying amount of the Investment in Entity B on December 31, 2020?

a. 900,000
b. 920,000
c. 1,000,000
d. 950,000

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27. What is the investment income for 2020 if Entity A elects cost method to account its Investment in
Entity B in its separate financial statements?

a. 7,000
b. 27,000
c. 180,000
d. 107,000

28. If Entity A elects fair value model to account its Investment in Entity B in its separate financial
statements, what is the carrying amount of the Investment in Entity B on December 31, 2020?

a. 900,000
b. 920,000
c. 1,000,000
d. 950,000

29. What is the net effect in profit or loss for 2020 if Entity A elects fair value model to account its
Investment in Entity B in its separate financial statements?

a. 7,000
b. 27,000
c. 180,000
d. 107,000

In the first year of operations of a nonprofit organization, the following transactions occurred:

 The nonprofit organization received P1,000,000 fund from a donor who stipulated that it shall be
invested indefinitely and the dividend from such investment shall be used for research project of the
organization. Dividend amounting to P150,000 was received during the year but only P50,000 was
spent for the research project.

 The nonprofit organization received P300,000 fund from a donor who stipulated that it shall be used
for the acquisition of service car. The nonprofit organization used P100,000 of the fund for the
acquisition of a service car with useful life of 5 years. The car was acquired at the middle of the year.

 The nonprofit organization received P500,000 fund who stipulated that it shall be used based on the
discretion of the Board of Trustees of the nonprofit organization. The nonprofit organization used
P100,000 for the acquisition of souvenir items which were sold by the nonprofit organization for
P150,000. The remaining P400,000 was designated by the Board of Trustees for future fundraising
projects.

30. What is the amount of permanently restricted net assets at the end of the first year?

a. 1,100,000
b. 1,300,000
c. 1,200,000
d. 1,000,000

31. What is the amount of temporarily restricted net assets at the end of the year?

a. 100,000
b. 300,000
c. 200,000
d. 700,000

32. What is the amount of unrestricted net assets at the end of the year?

a. 640,000
b. 540,000
c. 590,000
d. 630,000

33. On September 1, 2018, Bain Company received an order for equipment from a foreign customer for
300,000 local currency units (LCU) when the US dollar equivalent was $96,000. Bain shipped the

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 equipment on October 15, 2018, and billed the customer for 300,000 LCU when the US dollar
equivalent was $100,000. Bain received the customer remittance in full on November 16, 2018, and
sold the 300,000 LCU for $105,000. In the income statement for the year ended December 31, 2018,
what amount should Bain report as part of net income a foreign exchange transaction gain?

a. $ 0
b. $4,000
c. $5,000
d. $9,000

34. On September 1, 2018, Cano Company, a US corporation, sold merchandise to a foreign firm for
250,000Botswana pula. Terms of the sale require payment in pula on February 1, 2019.. On
September 1, 2018, the spot exchange rate was $.20 per pula. At December 31, 2018, Cano’s year-
end, the spot rate was $.19, but the rate increased to $.22 by February 1, 2019, when payment was
received. How much should Cano report as foreign exchange transaction gain or loss as part of 2019
income?

a. $ 0
b. $2,500 loss
c. $5,000 gain
d. $7,500 gain

Hunt Company purchased merchandise for £300,000 from a vendor in London on November 30, 2018.
Payment in British pounds was due on January 30, 2019. The exchange rates to purchase one pound
were as follows:

November 30, 2018 December 31, 2018

Spot-rate $1.65 $1.62

30-day rate 1.64 1.59
60-day rate 1.63 1.56

35. In the income statement, what amount should Hunt report as foreign exchange transaction gain
as part of net income?

a. $12,000
b. $ 9,000
c. $ 6,000
d. $ 0

Ball Company had the following foreign currency transactions during 2018:

 Merchandise was purchased from a foreign supplier on January 20, 2018, for the US dollar
equivalent of $90,000. The invoice was paid on March20, 2018, at the US dollar equivalent of
$96,000.

 On July 1, 2018, Ball borrowed the US dollar equivalent of $500,000 evidenced by a note payable in
the lender’s local currency on July 1, 2020. On December 31, 2018, the US dollar equivalents of the
principal amount and accrued interest were $520,000 and $26,000, respectively. Interest on the
note is 10% per annum.

36. In Ball’s 2018 income statement, what amount should be included as foreign exchange
transaction loss as part of net income?

a. $ 0
b. $ 6,000
c. $21,000
d. $27,000

On November 30, 2018, Tyrola Publishing Company, located in Colorado, executed a contract with
Ernest Blyton, an author from Canada, providing for payment of 10% royalties on Canadian sales of
Blyton’s book. Payment is to be made in Canadian dollars each January 10 for the previous year’s sales.
Canadian sales of the book for the year ended December 31, 2019, totaled $50,000 Canadian. Tyrola

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paid Blyton his 2019 royalties on January 10, 2020. Tyrola’s 2019 financial statements were issued on
February 1, 2020. Spot rates for Canadian dollars were as follows:

November 30, 2018 $.87

January 1, 2019 $.88
December 31, 2019 $.89
January 10, 2020 $.90

37. How much should Tyrola accrue for royalties payable at December 31, 2019?

a. $4,350
b. $4.425
c. $4,450
d. $4,500

On November 1, 2020, an entity acquired on account goods from a foreign supplier at a cost of $1,000.
The accounts payable are paid on January 30, 2021.

On December 1, 2020, an entity sold on account the said goods to a foreign customer at a selling price of
$1,500. The accounts receivable are collected on February 28, 2021.

The entity is operating in Philippine economy wherein the functional currency is the Philippine Peso.

The following direct exchange rates are provided:

Buying spot rate Selling spot rate

November 1, 2020 P40 P42

December 1, 2020 39 40
December 31, 2020 45 47

38. What is the sales revenue for 2020?

a. 58,500
b. 60,000
c. 67,500
d. 72,000

39. What is the carrying amount of accounts receivable on December 31, 2020?

a. 58,500
b. 60,000
c. 67,500
d. 72,000

40. What is the carrying amount of accounts payable on December 31, 2020?

a. 40,000
b. 42,000
c. 45,000
d. 47,000

41. What is the net foreign currency gain for 2020?

a. 4,000
b. 5,000
c. 3,000
d. 6,000

Entity A owns majority of the outstanding ordinary shares of Entity B which is operating in United States
of America wherein the functional currency is the USA $. However, the presentation currency of Entity B
is the Philippine Peso because that is the presentation currency of Entity A. For the year ended

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December 31, 2020, Entity B presented its Statement of Financial Position in its functional currency of
USA $:

Current assets $10,000 Current liabilities $10,000

Noncurrent assets 40,000 Noncurrent liabilities 20,000
Ordinary share capital 5,000
Preference share capital 8,000
Retained earnings 7,000
Total Assets $50,000 Total Liabilities and shareholders $50,000

 The ordinary shares are issued on January 1, 2019 while the preference shares are issued on July 1,
2019.
 B reported $1,000 net income during 2020 and declared dividends in the amount of $200 on
December 1, 2020.
 The translated amount of retained earnings on December 31, 2019 is P300,000.

The following direct exchange rates are provided:

January 1, 2019 P40

July 1, 2019 42
December 31, 2019 43
December 1, 2020 41
December 31, 2020 45
Average rate 2020 44

42. What is the amount of net assets in US dollars on December 31, 2019?

a. 19,200
b. 20,000
c. 19,000
d. 20,200

43. What amount of translation gain as component of other comprehensive income should be
presented in the of statement of comprehensive income for the year ended December 31, 2020?

a. 38,600
b. 39,200
c. 40,400
d. 41,800

44. What is the translated retained earnings balance on December 31, 2020?

a. 300,000
b. 335,800
c. 344,000
d. 281,800

45. What is the cumulative translation credit that should to be presented in the statement of financial
position on December 31, 2020?

a. 25,400
b. 28,200
c. 26,800
d. 24,600

On December 1, 2020, Entity A imported goods at a price of $1,000 payable on March 1, 2021. In order
to hedge this foreign currency denominated importation, Entity A entered into a forward contract with a
bank to purchase $1,000. Entity A is operating in Philippine economy where the functional currency is
Philippine peso. The following direct exchange rates are given:

December 1, 2020 December 31, 2020 March 1, 2021

Buying spot P43 P40 P41

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 Selling spot 45 44 49

46. What is the foreign currency gain or loss on the hedged item for 2020?

a. 2,000 loss
b. 1,000 gain
c. 3,000 gain
d. 4,000 gain

47. What is the foreign currency gain or loss on the hedging instrument for 2021?

a. 4,000 gain
b. 2,000 loss
c. 1,000 loss
d. 3,000 gain

Kline Company purchased inventory on November 30, 2018 for $10,000 payable March 1, 2019. On
December 1, 2018, the entity entered into a forward contract to purchase $10,000in 90 days to hedge
the purchase of inventory on November 30, 2018. The relevant exchange rates are:

Spot rate Forward rate

November 30, 2018 P45 P47

December 1, 2018 46 48
December 31, 2018 50 51

48. What amount of foreign currency transaction gain from the forward contract should be included
in net income for 2018?

A. 50,000
B. 40,000
C. 30,000
D. 0

49. What amount of foreign currency transaction loss should be included in income from the
revaluation of accounts payable for 2018?

A. 40,000
B. 50,000
C. 10,000
D. 0

On December 1, 2018 Winston Company entered into a forward contract to purchase $10,000 in 90 days
to hedge a commitment to purchase equipment being manufactured to the entity’s specifications. The
expected delivery date is March 1, 2019, at which time settlement is due to the manufacturer. The
hedge qualifies as a fair value hedge. The relevant exchange rates are:

Spot rate Forward rate

December 1, 2018 P48 P49

December 31, 2018 52 51

50. What amount of foreign currency transaction gain from the forward contract should be included
in net income for 2018?

A. 20,000
B. 40,000
C. 10,000
D. 0

On November 1, 2020, Entity A entered into a firm commitment for the exportation of goods at a price
of $2,000. Delivery will happen on January 31, 2020. In order to hedge this foreign currency
denominated firm commitment, Entity A entered into a forward contract with a bank to sell $2,000.
Entity A is operating in Philippine economy where the functional currency is Philippine peso. Entity A

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elects to use fair value hedge to account this hedge of firm commitment. The following direct exchange
rates are given:

November 1, 2020 December 31, 2020 January 31, 2021

Spot rate P43 P40 P44

90-day forward rate 41 43 44
60-day forward rate 45 42 41
30-day forward rate 47 46 42

51. What is the carrying amount of firm commitment asset or liability on December 31, 2020?

a. 4,000 liability
b. 10,000 liability
c. 2,000 liability
d. 6,000 liability

52. What is the foreign currency gain or loss on hedging instrument for 2021?

a. 4,000 gain
b. 2,000 loss
c. 6,000 loss
d. 8,000 gain

On November 1, 2020, Entity A anticipated the purchase of equipment on January 31, 2021 at a price of
$1,200. In order to hedge this highly probable forecasted importation, Entity A entered into a forward
contract with a bank to purchase $1,200. Entity A is operating in Philippine economy where the
functional currency is Philippine peso. The following direct exchange rates are made available:

November 1, 2020 December 31, 2020 January 31, 2021

Spot rate P45 P44 P43

90-day forward rate 42 41 43
60-day forward rate 46 45 40
30-day forward rate 48 44 40

53. What is the unrealized holding gain or loss to be recognized as component of other
comprehensive income in the statement of comprehensive income for the year ended December
31, 2020?

a. 2,400 gain
b. 1,200 gain
c. 3,600 loss
d. 4,800 gain

54. What is the unrealized holding gain or loss to be recognized as component of other
comprehensive income in the statement of comprehensive income for the year ended December
31, 2021?

a. 4,800 loss
b. 1,200 loss
c. 3,600 gain
d. 2,400 gain

55. What is the cumulative unrealized gain or loss before reclassification to be reported as component
of other comprehensive income in the Statement of Changes in equity on December 31, 2021?

a. 1,200 gain
b. 1,800 loss
c. 2,400 gain
d. 0

56. What is the cost of equipment in Philippine peso on January 31, 2021?

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 a. 48,000
b. 50,400
c. 49,200
d. 51,600

On November 1, 2020, Entity A anticipated the purchase of inventory on January 31, 2021 at a price of
$1,000. In order to hedge this highly probable forecasted importation, Entity A acquired a call option
from a bank giving it the right to purchase $1,000 at an option price of P40 by paying an option premium
of P300. Entity A is operating in Philippine economy where the functional currency is Philippine peso.
The following data are provided:

November 1, 2020 December 31, 2020 January 31, 2021

Spot rate P40 P 44 P43

Fair value of call option ? 4,500 ?

Entity A imported the goods on the date anticipated. Afterwards, Entity A was able to resell 30% of the
goods imported during 2021.

57. What is the unrealized holding gain or to be recognized as component of other comprehensive
income in the of statement of comprehensive income for the year ended December 31, 2020?
a. 4,000
b. 4,500
c. 4,300
d. 4,200

58. What is the unrealized holding gain to be recognized in the profit or loss in the statement
comprehensive income for the year ended December 31, 2020?

a. 300
b. 200
c. 500
d. 100

59. What is the unrealized holding loss to be recognized as component of other comprehensive
income in the statement of comprehensive income for the year ended December 31, 2021?

a. 3,000
b. 2,000
c. 1,000
d. 4,000

60. Dividends of a foreign subsidiary are translated at: 

a. the average exchange rate for the year
b. the exchange rate on the date of declaration
c. the current exchange rate on the date of preparation of the financial statement.
d. the exchange rate on the record date.

ajmiranda
------END-----
Good luck and God bless

Reviewed and Checked by:

Dr. Genoveva Y. Reyes, CPA, FRIAcc

Dean, College of Business Education

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