Problem 15-9 (AICPA Adapted) During 2021, Garr Company purchased marketable equity securities as a trading investment. For the year ended December 31, 2021, the entity recognized an unrealized loss of P200,000. There were no security transactions during 2022. The entity provided the following information on December 31, 2022: Market value Security A B Cost 2,450,000 1,800,000 4,250,000 2,300,000 (10000) 900.000 2,700,000 5,000,000 In the 2022 income statement, what amount should be reported as unrealized gain or loss? a. Unrealized gain of P950,000 b. Unrealized loss of P950,000 c. Unrealized loss of P750,000 Unrealized gain of P750,000 d.

Problem 15-9 (AICPA Adapted) During 2021, Garr Company purchased marketable equity securities as a trading investment. For the year ended December 31, 2021, the entity recognized an unrealized loss of P200,000. There were no security transactions during 2022. The entity provided the following information on December 31, 2022: Market value Security A B Cost 2,450,000 1,800,000 4,250,000 2,300,000 (10000) 900.000 2,700,000 5,000,000 In the 2022 income statement, what amount should be reported as unrealized gain or loss? a. Unrealized gain of P950,000 b. Unrealized loss of P950,000 c. Unrealized loss of P750,000 Unrealized gain of P750,000 d.

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
Hamilton Companys balance sheet on January 1, 2019, was as follows: Korbel Company is considering purchasing Hamilton (a privately held company) and discovers the following about Hamilton: a. No allowance for doubtful accounts has been established. A 10,000 allowance is considered appropriate. b. Marketable securities are valued at cost. The current market value is 60,000. c. The LIFO inventory method is used. The FIFO inventory of 140,000 would be used if the company is acquired. d. Land, included in property, plant, and equipment, which is recorded at its cost of 50,000, is worth 120,000. The remaining property, plant, and equipment is worth 10% more than its depreciated cost. e. The company has an unrecorded trademark that is worth 70,000. f. The companys bonds are currently trading for 130,000. g. The pension liability is understated by 40,000. Required: 1. Compute the amount of goodwill if Korbel agrees to pay 500,000 cash for Hamilton. 2. Next Level What are the reasons that the book value of Hamiltons net identifiable assets differ from their market value? 3. Prepare the journal entry to record the acquisition on the books of Korbel assuming Hamilton is liquidated. 4. If Korbel agrees to pay only 400,000 cash, how much goodwill exists? 5. If Korbel pays only 400,000 cash, prepare the journal entry to record the acquisition on its books, assuming Hamilton is liquidated.
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, XYZ Co. purchased marketable equity securities to be measured at fair value thru other comprehensive income. On December 31, 2019, the balance of unrealized loss was P75,000. There were no security transactions during 2020. Pertinent data on December 31, 2020 are as follows: Security Cost Market Value АВС P1,000,000 850,000 950,000 P900,000 800,000 1,000,000 DEF MNO In the statement of changes in equity for 2020, how much should be included as cumulative unrealized loss as component of other comprehensive income?
Problem 15-10 (AICPA Adapted) During 2021, Haggard Company purchased marketable equity securities for P1,850,000 to be held as trading investments, In 2021, the entity appropriately reported an unrealized gain of P250,000 in the income statement. There was no change during 2021 in the composition of the portfolio of trading securities. Pertinent data on December 31, 2022 are: Security Cost Market value 600,000 450,000 800,000 900,000 400,000 1,200,000 What amount of unrealized gain on these securities should be included in the 2022 income statement? a. 400,000 b. 650,000 c. 900,000 d. 700,000 ABC
During 2020, Boston Company purchased marketable securities as a trading investment. For the year ended December 31, 2020, the entity recognized an unrealized loss of P230,000. There were no security transactions during 2021. The entity provided the following information on December 31, 2021: Trading security = A; Cost = 2,450,000; Market Value = 2,300,000. Trading security = B; Cost = 1,800,000; Market value = 1,820,000. In the 2021 income statement, what amount should be reported as unrealized gain or loss?
In 2019, Edward Company purchased equity securities as a trading investment. For the year ended December 31, 2019, the entity recognized an unrealized holding loss of P230,000. There were no security transactions during 2020. Pertinent information on December 31, 2020 is as follows: Security Cost Market Value A 2,450,000 2,300,000 B 1,800,000 1,820,000 4,250,000 4,120,000 In the 2020 income statement, what amount should be reported as unrealized holding gain or loss?
. 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? *
Beresford Inc. purchased several investments in debt securities during 2020, its first year of operations. The following information pertains to these securities. The fluctuations in their fair values are not considered permanent. Held-to-Maturity Fair Value Fair Value Amortized Cost Amortized Cost Securities: 12/31/2020 12/31/2021 12/31/2020 12/31/2021 АВС Со. Вonds $385,000 $410,000 $377, 500 $370, 000 Fair Value Fair Value Trading Securities: 12/31/2021 $ 66,000 $ 87,000 $ 48,500 12/31/2020 Cost DEF Co. Bonds $ 55,000 $ 57,000 $ 54,000 $ 69,100 $ 49,000 $ 42,900 GEH Inc. Bonds IJK Inc. Bonds Available-for-Sale Fair Value Fair Value Cost 12/31/2020 $147,400 Securities: 12/31/2021 LMN Co. Bonds $161,900 $150, 000 What balance sheet amount would Beresford report for the total of its investments in bonds at 12/31/2020?
During 2019, HCC Company acquired marketable equity securities intended for trading.For the year ended December 31, 2019 the entity recognized an unrealized loss of P100,000.There were no transactions relating to trading securities during 2020.HCC Company provided the following information on December 31, 2020: Security cost market value 1 1,970,000 2,100,000 2 1,100,000 1,500,000 3,070,000 3,600,000 In the 2020 income statement, what amount should be reported as unrealized gain?
2. Edwards Company began business in February of 2021. During the year, Edwards purchased the three trading securities listed below. On its December 31, 2021, balance sheet, Edwards appropriately reported a P4,000 credit balance in its Market Adjustment-Trading securities account. There was no change during 2022 in the composition of Edward's portfolio of trading securities. Pertinent data are as follows: Security A B с Cost P120,000 90,000 160,000 P370,000 Fair Value 12/31/22 P126,000 80,000 157,000 P363,000 What amount of loss on these securities should be included in Edward's income statement for the year ended December 31, 2022? d. P0| a. P11,000 b. P7,000 c. P3,000
On December 31, 2021, Kona purchased debt securities as trading securities. Pertinent data are as follows:\\n Fair Value\\nSecurity Cost At 12/31/22\\nA $225,000 $215,000\\nB 200,000 210,000\\nC 230,000 210,000\\nOn December 31, 2022, Kona transferred its investment in security C from trading to available‐for‐sale\\nbecause Kona intends to retain security C as a long‐term investment. What total amount of gain or loss on\\nits securities should be included in Kona's income statement for the year ended December 31, 2022?