Problem 15-9 (IFRS) Judicious Company acquired an equity investment a number of yèars ago for P3,000,000 and classified it as at fair value through other comprehensive income. On December 31, 2019, the cumulative loss recognized in other comprehensive income was P400,000 and the carrying amount of the investment was P2,600,000. On December 31, 2020, the issuer of the equity instrument was in severe financial difficulty and the fair value of the equity investment had fallen to P1,200,000. What cumulative amount of unrealized loss should be reported as component of other comprehensive income in the statement of changes in equity for the year ended December 31, 2020? 1,400,000 1,800,000 1,000,000

Problem 15-9 (IFRS) Judicious Company acquired an equity investment a number of yèars ago for P3,000,000 and classified it as at fair value through other comprehensive income. On December 31, 2019, the cumulative loss recognized in other comprehensive income was P400,000 and the carrying amount of the investment was P2,600,000. On December 31, 2020, the issuer of the equity instrument was in severe financial difficulty and the fair value of the equity investment had fallen to P1,200,000. What cumulative amount of unrealized loss should be reported as component of other comprehensive income in the statement of changes in equity for the year ended December 31, 2020? 1,400,000 1,800,000 1,000,000

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

Chapter12: Intangibles

Section: Chapter Questions

Problem 7P: Hamilton Companys balance sheet on January 1, 2019, was as follows: Korbel Company is considering...

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Problem 15-9 (IFRS) Judicious Company acquired an equity investment a number of years ago for P3,000,000 and classified it as at fair value through other comprehensive income. On December 31, 2020, the cumulative loss recognized in other comprehensive income was P400,000 and the carrying amount of the investment was P2,600,000. On December 31, 2021, the issuer of the equity instrument was in severe financial difficulty and the fair value of the equity investment had fallen to P1,200,000. What cumulative amount of unrealized loss should be reported as component of other comprehensive income in the statement of changes in equity for the year ended December 31, 2021? a. 1,400,000 b. 1,800,000 c. 1,000,000 d. 0.
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 15-8 (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?
During 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?
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, 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? *
On December 31, 2019, Belle Company appropriately reported a P100,000 unrealized loss. There was no change in 2020 in the composition of Belle’s portfolio of Investments in equity securities held as financial asset at fair value through other comprehensive income. Pertinent data are as follows: Security Cost Market value December 31, 2020 A 1,200,000 1,300,000 B 900,000 500,000 C…
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?
Problem 19: 56. On its December 31, 2020 balance sheet, Polo Company reported securities measured at fair value through other comprehensive income. These securities were acquired at a cost P360,000 and had a year-end fair value of P330,000. On December 31, 2021, the fair value of the securities was P350,000. What should Polo report as 2021 income or loss in the profit or loss statement as a result of the change in market value? Problem 20: Fastfoods Company acquired the following investments classified as trading securities on August 20, 2020: Jolibee shares KFC shares 400,000 250,000 300,000 P McDonald shares On December 31, 2020, the close of the year, these investments had the following market values: Jolibee shares KFC shares 450,000 220,000 310,000 McDonald shares 57. On February 23, 2021, Fastfoods company sold the KFC shares for P230,000. How much would berecognized as gain/ (loss) on sale of securities on the sale of the KFC shares as a component of other comprehensive income?
Current Attempt in Progress At December 31, 2020, the equity investments of Bramble Inc. that were accounted for using the FV-OCI model without recycling were as follows: Investment Ahn Inc. Burnham Corp. Chi Ltd. Total Cost and Carrying Amount $175,500 122,600 73,000 $371,100 Fair Value $149,800 140.100 75,100 $365,000 Unrealized Gain (Loss) $(25,700 ) 17,500 2,100 $(6,100) Because of a change in relationship with Ahn Inc., Bramble Inc. sold its investment in Ahn for $153,700 on January 20, 2021. No other investments were acquired or sold during 2021; however, a dividend of $1,300 was received from Burnham Corp. in June. At December 31, 2021, the fair values of Burnham and Chi shares were $154,800 and $72,200, respectively.
On December 31, 2020, Petra Company invests $40,000 in Valery, a variable interest entity. In contractual agreements completed on that date, Petra established itself as the primary beneficiary of Valery. Previously, Petra had no equity interest in Valery. Immediately after Petra's investment, Valery presents the following balance sheet: Cash Marketing software Computer equipment Total assets 40,000 160,000 60,000 $ 260,000 $ Required A Long-term debt Noncontrolling interest Petra equity interest Total liabilities and equity Each of the amounts represents an assessed fair value at December 31, 2020, except for the marketing software. The December 31 business fair value of Valery is assessed at $160,000. Required B a. If the carrying amount of the marketing software was undervalued by $45,000, what amounts for Valery would appear in Petra's December 31, 2020, consolidated financial statements? Complete this question by entering your answers in the tabs below. b. If the carrying amount of…