Company acquired equity securities during the year 2018 and designated as fair value to other comprehensive income. An analysis of the investments on December 31, 2020 showed the following: Securities Cost Market A P 1,500,000 PI,400,000 B 2,200,000 2,000,000 C 3,000,000 2,900,000 D 3,800,000 3,600.000 Total 10,500,000 9,900,000 If the Company's income tax rate is 35%, what am

Company acquired equity securities during the year 2018 and designated as fair value to other comprehensive income. An analysis of the investments on December 31, 2020 showed the following: Securities Cost Market A P 1,500,000 PI,400,000 B 2,200,000 2,000,000 C 3,000,000 2,900,000 D 3,800,000 3,600.000 Total 10,500,000 9,900,000 If the Company's income tax rate is 35%, what am

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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During 2021, Anthony Company purchased debt securities as a long-term investment and classified them as trading. All securities were purchased at par value. Pertinent data are as follows: The net holding gain or loss included in Anthonys income statement for the year should be: a. 0 b. 3,000 gain c. 9,000 loss d. 12,000 loss
Refer to the information in RE13-5. Assume that on December 31, 2019, the investment in Smith Corporation bonds has a market value of 12,500. Prepare the year-end journal entry to record the unrealized gain or loss.
During 2021, Lavida Loca Company purchased trading securities with the following cost and market value on December 31, 2021. Cost Market value A 300,000 400,000 B 1,500,000 1,700,000 C 3,800,000 3,900,000 The entity sold Investment C on January 10, 2022 for P 4,000,000 What is the unrealized gain or loss should be reported in the income statement for 2021? a. 100,000 gain b, 100,000 loss c. 400,000 gain d. 400,000 loss
Cariston, Inc. has equity securities designated as at fair value through profit or loss that were purchased during 2020. At the end of 2020, the securities had total market value of P525,000. As of December 31, 2021, the records show cost and market value as follows: Investment Cost Market Value 1 P100,000 P90,000 2 190,000 210,000 3 250,000 235,000 The gain or loss that would reported in profit or loss as a result of the valuation of the securities at the end of 2021 is
At December 31, 2018, Hull-Meyers Corp. had the following investments that were purchased during 2018, itsfirst year of operations:Cost Fair ValueTrading Securities:Security A $ 900,000 $ 910,000Security B 105,000 100,000Totals $ 1,005,000 $ 1,010,000 Securities Available-for-Sale:Security C $ 700,000 $ 780,000Security D 900,000 915,000Totals $ 1,600,000 $ 1,695,000Securities to Be Held-to-Maturity:Security E $ 490,000 $ 500,000Security F 615,000 610,000Totals $ 1,105,000 $ 1,110,000No investments were sold during 2018. All securities except Security D and Security F are considered shortterminvestments. None of the fair value changes is considered permanent.Required:Determine the following amounts at December 31, 2018.1. Investments reported as current assets2. Investments reported as noncurrent assets3. Unrealized gain (or loss) component of income before taxes4. Unrealized gain (or loss) component of accumulated other comprehensive income in shareholders’ equity
Lopez Company purchased equity securities during 2020 to be held as Investment. The cost and Market Value of the investments are: December 31,2020. Cost. Market Trading Securities. 2,000,000. 2,500,000 Securities not held for trading. 3,000,000. 2,300,000 December 31,2021 Cost Market Trading Securities. 1,000,000 1,100,000 Securities not held for trading. 1,500,000. 1,450,000 On June 30 2021, half of the trading Securities were sold for 1,500,000 and securities not held for trading were sold for 1,100,000. The securities not held for trading are measured at fair value through other comprehensive income by election. REQUIRED: Prepare the Journal entries for 2020 and 2021
A Company had various equity investments at fair value through profit or loss transactions during 2019 and 2020. The acquisition cost of all the securities in its portfolio during 2019 was P532,000. At December 31, 2019 and December 31, 2020, the market value of these equity investments were P541,000 and P512,000, respectively. In 2021, all of these securities were sold for P550,000. Assuming that the securities held by A Company are classified as at fair value through other comprehensive income, what is the gain on sale reported in A Company's 2020 Income statement? a. P38,000 b. P18,000 c. P9,000 d. P0
Splendid Company purchased equity securities during 2020 to be held as investments. The cost and market value of the investments are: Cost Market December 31, 2020 Trading securities 2,000,000 2,500,000 Securities not held for trading 3,000,000 2,900,000 December 31, 2021 Trading securities 2.000,000 2,200,000 Securities not held for trading 3,000,000 2,300,000 The securities not held for trading are measured at fair value through ather comprehensive income by irrevocable election. Requirement: Complete the table below. Wite zero (0) #R is not applicable. December 31, 2020 December 31, 2021 Statement of Financial Position Investments - FVPL Investments - FVOCI Statement of Income Unrealized gain Unrealized loss Realized gain Realized loss Statement of Other Comprehensive Income Unrealized gain Unrealized loss Statement of Changes in Equity Other Comprehensive Income Retained earnings
A Company had various equity investments at fair value through profit or loss transactions during 2019 and 2020. The acquisition cost of all the securities in its portfolio during 2019 was P532,000. At December 31, 2019 and December 31, 2020, the market value of these equity investments were P541,000 and P512,000, respectively. In 2021, all of these securities were sold for P550,000.1. Assuming no other transactions are noted regarding these financial assets at fair value through profit or loss, what is the amount of unrealized gain/loss reported in 2020 income statement relating to these securities? a. P29,000 loss b. P20,000 loss c. P29,000 gain d. P20,000 gain 2. What is the gain on sale reported in A Company's 2021 income statement? a. P38,000 b. P18,000 c. P9,000 d. P0
On its December 31, 2024, balance sheet, Sandhill Company reported its investment in equity securities, which cost $690000, at fair value of $618000. At December 31, 2025, the fair value of the securities was $649000. What should Sandhill report on its 2025 income statement as a result of the increase in fair value of the investments in 2025? O Realized gain of $31000 O Unrealized gain of $31000 O Unrealized loss of $41000 O $0
Cloud 9 Inc. has equity securities designated as at fair value through profit or loss that were purchased during 2020. At the end of 2020, the securities had a total fair value of P525,000. As of December 31, 2021, the cost and fair values are as follows: Investment Cost Fair Value 1 P100,000 P 90,000 2 190,000 210,000 3 250,000 235,000 The gain or loss that would be reported in profit or loss as a result of the valuation of the securities at the end of 2021 is? A P5,000 B P25,000 c) P10,000 D P20,000
Paul Company presented the following information pertaining to its investments in equity securities. FVPL FVOCICost P1,000,000 P1,000,000Market value December 31, 2020 1,050,000 980,000 December 31, 2019 950,000 920,0001. What amount should Paul Company report as unrealized gain on its 2020 profit or loss? a. P160,000 b. P110,000 c. P100,000 d. P 50,000 2.What amount should Paul report as unrealized gains/losses in the shareholders' equity of its December 31, 2020 statement of financial position? a. P60,000 credit b. P20,000 debit c. P80,000 debit d. P20,000 credit