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?
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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?
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- Refer to the information in RE13-11. Assume that on December 31, 2019, the investment in Cornett Company stock has a market value of 10,500. Prepare the year-end journal entry to record the unrealized gain or loss.In 2019, Josiah Company purchased nontrading equity in investments which are irrevocably designated at FVOCI: Purchased Price Transaction Cost Market Value on Dec. 31, 2019Security A 1,500,000 120,000 1,800,000Security B 2,200,000 190,000 3,000,000Security 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 0During 2019, the first year of operation, Maly Corporation made various investments in trading securities. On December 31, 2019, the investments had the following cost and market value: Cost Market Value P 1,300,000 800,000 1,000,000 12/31/2019 P 1,250,000 900,000 700,000 XYZ MNO FGH How much should be included as unrealized loss on the income statement for the year 2019?
- 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 lossAnswer should be presented as: DECREASE 123456 or INCREASE 123456 During 2021, the first year of operations, Dejavu Company purchased the following equity securities: Market Value December 31, 2022 1,900,000 1,100,000 1,600,000 1,200,000 Security One Security Two Security Three Security Faur Cost 2,200,000 700,000 December 31, 2021 1,400,000 1,000,000 1,500,000 2,500,000 1,600,000 2,000,000 Security One and Security Two are held for trading and Security Three and Security Four are measured at Fair value through other comprehensive income by election. During 2022, the entity sold Security Two for P1,000,000 and half of Security Four for P500,000. Revenues and operating (marketing and administrative) expenses for the year 2022 are P7,500,000 and P4,000,000 respectively. How much is the change in Retained Earnings for the year 2022 due to the equity securities (indicate whether increase or decrease)?Answer should be presented as: DECREASE 123456 or INCREASE 123456 :During 2021, the first year of operations, Dejavu Company purchased the following equity securities: Security One Security Two Security Three Security Four Cost 2,200,000 700,000 1,600.000 2,000,000 December 31, 2021 1,400,000 1,000,000 1,500.000 Market Value December 31, 2022 1,900,000 1,100,000 1,600,000 1,200,000 2,500.000 Security One and Security Two are held for trading and Security Three and Security Four are measured at Jair value through other comprehensive income by election. During 2022, the entity sold Security Two for P1,000,000 and half of Security Four for PS00,000. Revenues and operating (marketing and administrative) expenses for the year 2022 are P7500,000 and P4,000,000 respectively. How much is the change in Retained Earnings for the year 2022 due to the equity securities findicate whether increase or decrease)?
- Problem 15-8 (AICPA Adapted) During 2019, Haggard Company purchased marketable equity. securities for P1,850,000 to be held as trading investments. In 2019, the entity appropriately reported an unrealized loss of P200,000 in the income statement. There was no change during 2019 in the composition of the portfolio of trading securities. Pertinent data on December 31, 2020 are: Security Cost Market value A B 600,000 450,000 800,000 700,000 400,000 900,000 What amount of unrealized gain on these securities should be included in the 2020 income statement? 350,000 150,000 550,000 d. с.. During 2019, Blackpink Company purchased marketable equity securities to be measured at fair value through other comprehensive income. On December 31, 2019, the balance in the unrealized loss on these securities was P200,000. There were no security transactions during 2020. Pertinent data on December 31, 2020 are: Cost Security Value Marketable A 2,100,000 1,600,000 1,850,000 2,000,000 C 1,050,000 900,000 In the statement of changes in equity for 2020, what amount should be included as cumulative unrealized loss as component of other comprehensive income? *At the beginning of 2019, Ace Company had the following portfolio of investments in available-for-sale debt securities (all of which were acquired at par value): Security Cost 1/1/19 Fair Value A $50,000 $63,000 B 75,000 71,000 Totals $125,000 $134,000 During 2019, the following transactions occurred: Transactions: May 3 Purchased C debt securities at their par value for $50,000. July 1 Sold all of the A securities for $63,000 plus interest of $1,000. Dec. 31 Received interest of $900 on the B and C securities. Additionally the following information was available: Security 12/31/19 Fair Value B $82,000 C 53,000 Required: 1. Prepare journal entries to record the preceding information. 2. What is the balance in the Unrealized Holding Gain/Loss account on December 31, 2019? 3. Next Level What justification does the FASB give for its treatment of unrealized holding gains and losses for available-for-sale…
- At the beginning of 2019, Ace Company had the following portfolio of investments in available-for-sale debt securities (all of which were acquired at par value): Security Cost 1/1/19 Fair Value A $35,000 $44,000 B 53,000 50,000 Totals $88,000 $94,000 During 2019, the following transactions occurred: Transactions: May 3 Purchased C debt securities at their par value for $50,000. July 1 Sold all of the A securities for $44,000 plus interest of $1,000. Dec. 31 Received interest of $1,000 on the B and C securities. Additionally the following information was available: Security 12/31/19 Fair Value B $58,000 C 53,000 1.What is the balance in the Unrealized Holding Gain/Loss account on December 31, 2019? fill in the blankIn March of 2019, Boyet Corporation purchased nontrading equity investments which are irrevocably designated at FV-OCI. On December 31, 2019, the balance in the unrealized gain/(loss) on these securities was P200,000. During 2020, stock FF was sold for P1,100,000. Pertinent data on Dec. 31, 2020 are as follows: Cost Market Value DD P2,100,000 P1,600,000 EE 1,850,000 2,000,000 FF 1,050,000 900,000 In its statement of changes in stockholder's equity for the year 2020, Boyet should report unrealized holding loss at what amount?In March of 2019, Boyet Corporation purchased nontrading equity investments which are irrevocably designated at FV-OCI. On December 31, 2019, the balance in the unrealized gain/(loss) on these securities was P200,000. During 2020, stock FF was sold for P1,100,000. Pertinent data on Dec. 31, 2020 are as follows: Cost Market Value DD P2,100,000 P1,600,000 2,000,000 900,000 In its statement of changes in stockholder's equity for the EE 1,850,000 FF 1,050,000 year 2020, Boyet should report unrealized holding loss at what amount?