During 2019, Mickey Mouse Company owns trading securities with Minnie Mouse Company. The cost of trading securities and their market value on December 31, 2019 are as follows: Security Cost Market Value X 750,000 900,000 Y 1,200,000 1,350,000 Z 2,700,000 2,200,000 Also in 2019, Mickey Mouse Company had net income of P1,500,000. What is the amount of net income after making an adjustment necessary for trading securities?

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 8P

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Question

During 2019, Mickey Mouse Company owns trading securities with Minnie Mouse Company. The cost of trading securities and their market value on December 31, 2019 are as follows:

Security                                              Cost                                      Market Value

     X                                                   750,000                                       900,000

     Y                                                 1,200,000                                  1,350,000

     Z                                                 2,700,000                                   2,200,000

Also in 2019, Mickey Mouse Company had net income of P1,500,000. What is the amount of net income after making an adjustment necessary for trading securities?

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