CLASSIFICATION 1. At what amount should the equity investment be initially recorded? 2. How much is the unrealized gain (loss) recognized in the 2019 profit or loss? 3. How much is the unrealized gain (loss) recognized in the 2019 other comprehensive income? 4. How much is the cumulative unrealized gain (loss) recognized in 2019 other comprehensive income? 5. How much is the cumulative unrealized gain (loss) recognized in other comprehensive income as of December 31, 2020? 6. How much is the realized gain (loss) recognized in profit or loss as a result of sale of investments on January 3, 2021? 7. How much is the cumulative unrealized gain (loss) in other comprehensive income as of December 31, 2021? FVTPL FVTOCI *Assume that Backstreet Co. elect to transfer any cumulative balance on OCI when the investment is disposed. 8. Journalize the transactions happened in both accounting for FVPL and FVTOCI
CLASSIFICATION 1. At what amount should the equity investment be initially recorded? 2. How much is the unrealized gain (loss) recognized in the 2019 profit or loss? 3. How much is the unrealized gain (loss) recognized in the 2019 other comprehensive income? 4. How much is the cumulative unrealized gain (loss) recognized in 2019 other comprehensive income? 5. How much is the cumulative unrealized gain (loss) recognized in other comprehensive income as of December 31, 2020? 6. How much is the realized gain (loss) recognized in profit or loss as a result of sale of investments on January 3, 2021? 7. How much is the cumulative unrealized gain (loss) in other comprehensive income as of December 31, 2021? FVTPL FVTOCI *Assume that Backstreet Co. elect to transfer any cumulative balance on OCI when the investment is disposed. 8. Journalize the transactions happened in both accounting for FVPL and FVTOCI
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
Chapter14: Financing Liabilities: Bonds And Long-term Notes Payable
Section: Chapter Questions
Problem 9P
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