In 2019, Josiah Company purchased nontrading equity in investments which are irrevocably designated at FVOCI: Purchased Price Transaction Cost Market Value on Dec. 31, 2019 Security A 1,500,000 120,000 1,800,000 Security B 2,200,000 190,000 3,000,000 Security C 3,500,000 250,000 4,000,000 On March 15, 2020, the entity sold Security A for 2,500,000.
In 2019, Josiah Company purchased nontrading equity in investments which are irrevocably designated at FVOCI: Purchased Price Transaction Cost Market Value on Dec. 31, 2019 Security A 1,500,000 120,000 1,800,000 Security B 2,200,000 190,000 3,000,000 Security C 3,500,000 250,000 4,000,000 On March 15, 2020, the entity sold Security A for 2,500,000.
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 1MC
Related questions
Question
In 2019, Josiah Company purchased nontrading equity in investments which are irrevocably designated at FVOCI:
Purchased Price Transaction Cost Market Value on Dec. 31, 2019
Security A 1,500,000 120,000 1,800,000
Security B 2,200,000 190,000 3,000,000
Security C 3,500,000 250,000 4,000,000
On March 15, 2020, the entity sold Security A for 2,500,000.
What amount of gain on sale should be received in the income statement for 2020?
Purchased Price Transaction Cost Market Value on Dec. 31, 2019
Security A 1,500,000 120,000 1,800,000
Security B 2,200,000 190,000 3,000,000
Security C 3,500,000 250,000 4,000,000
On March 15, 2020, the entity sold Security A for 2,500,000.
What amount of gain on sale should be received in the income statement for 2020?
choices
800,000
500,000
300,000
0
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Recommended textbooks for you
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning