Saleh sold the following stock in 2021. ABC, Incorporated, is a § 1202 qualified small business (QSB). Asset ABC, Incorporated, 200 shares DEF, Incorporated, 100 shares GHI, Incorporated, 50 shares Sale Date Cost $ 153,000 Acquired Sale Price 01/10/2020 $ 200,000 04/30/2021 24,600 19,350 11/15/2017 14,000 02/28/2021 03/31/2020 17,000 08/30/2021 Required: a. Complete the chart. b. After netting, what is the total gain or loss? c. If Saleh is in the 37% tax rate bracket, at what rate is the net gain or loss taxed? Complete this question by entering your answers in the tabs below. Req a Req b and c b. After netting, what is the total gain or loss? c. If Saleh is in the 37% tax rate bracket, at what rate is the net gain or loss taxed? b. c. Tax rate percentage

Saleh sold the following stock in 2021. ABC, Incorporated, is a § 1202 qualified small business (QSB). Asset ABC, Incorporated, 200 shares DEF, Incorporated, 100 shares GHI, Incorporated, 50 shares Sale Date Cost $ 153,000 Acquired Sale Price 01/10/2020 $ 200,000 04/30/2021 24,600 19,350 11/15/2017 14,000 02/28/2021 03/31/2020 17,000 08/30/2021 Required: a. Complete the chart. b. After netting, what is the total gain or loss? c. If Saleh is in the 37% tax rate bracket, at what rate is the net gain or loss taxed? Complete this question by entering your answers in the tabs below. Req a Req b and c b. After netting, what is the total gain or loss? c. If Saleh is in the 37% tax rate bracket, at what rate is the net gain or loss taxed? b. c. Tax rate percentage

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 14RE

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Following is a list of investments owned by Martinez Ltd., as of the company’s year-end, December 31, 2020: Investment No. Shares Cost Fair Value HFX Corporation 1,200 $9.00 $8.20 FDY Ltd. 2,100 6.50 6.55 CTN Corporation 3,700 7.00 7.60 On January 15, 2021, Martinez sold the shares in CTN Corporation for $8.10 per share. Prepare the journal entries required to record the sale, assuming the company uses the fair value through other comprehensive income without recycling method. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit Jan. 15, 2021 (To adjust to current fair value) (To record the sale of shares) (Reclassification…
Following is a list of investments owned by Ivanhoe Ltd., as of the company’s year-end, December 31, 2020: Investment No. Shares Cost Fair Value HFX Corporation 1,000 $8.00 $7.10 FDY Ltd. 3,000 6.90 6.95 CTN Corporation 4,600 5.00 5.80 On January 15, 2021, Ivanhoe sold the shares in CTN Corporation for $6.25 per share. Prepare the journal entries required to record the sale, assuming the company uses the fair value through other comprehensive income without recycling method. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit Jan. 15, 2021 (To adjust to current fair value) (To record the sale of shares) (Reclassification…
Saleh sold the following stock in 2021. ABC, Incorporated, is a § 1202 qualified small business (QSB). Asset Cost Acquired Sale Price Sale Date ABC, Incorporated, 190 shares $ 141,550 01/10/2020 $ 181,260 04/30/2021 DEF, Incorporated, 140 shares 27,300 11/15/2017 21,000 02/28/2021 GHI, Incorporated, 70 shares 26,740 03/31/2020 23,800 08/30/2021 Required: Complete the chart. After netting, what is the total gain or loss? If Saleh is in the 37% tax rate bracket, at what rate is the net gain or loss taxed?
6. The TPs sold the following stock in 2023: 300 shares of Adam, Inc.; Purchased on 8/21/20 for $52 per share; Sold on 5/2/23 for $62 per share reported to the TPs on Form 1099-B without basis reported. 1,000 shares of Eve, Inc.; Purchased on 8/24/22 for $176 per share; Sold on 6/30/23 for $166 per share reported to the TPs on Form 1099-B without basis reported. If only one of the following is a correct entry on the TP's return, it is: a. $3,000 on Schedule D, Part I, Line 1, column (h). b. ($10,000) on Form 8949, Part II, Line 1, column (h). c. ($3,000) on Form 1040, Line 7. d. ($7,000) on Schedule D, Part III, Line 21.
On January 1, 2021, Familia purchased 1,600 ordinary shares of another entity for P2,000,000. At December 31, 2021, the investee’s shares were selling for P1,400 per share. Familia irrevocably designated to classify equity investment at FVOCI. On October 1, 2022, Familia sold half of its shares at P1,800 per share. At December 31, 2022, the shares were selling at P1,900 per share. The unrealized gain is recognized in the statement of comprehensive income for the year end December 31, 2022 is
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Oriole Company purchased 300 of the 1000 outstanding shares of Sheffield Company's common stock for $680000 on January 2, 2021. During 2021, Sheffield Company declared dividends of $70000 and reported earnings for the year of $400000.If Oriole Company uses the equity method of accounting for its investment in Sheffield Company, its Equity Investments (Sheffield) account at December 31, 2021 should be $680000. $779000. $800000. $659000.
The Gypsy Corporation has the following portfolio of investment securities (designated at fair value through other comprehensive income) at December 31, 2019. Purchase price Fair value 12/31/18Dizon ordinary shares (5,000 shares) P225,000 P250,000Monterey preference shares (3,500 shares) 133,000 140,000Garcia ordinary shares (1,000 shares) 180,000 178,000On April 30. 2020, Gypsy sold all the Dizon shares at P54 per share. In addition, on July 31, 2020, 3,000 Barney ordinary shares were acquired at P59. The December 31, 220 fair values were: Monterey, P135,000; Garcia, P190,000; and Barney, P200,000.Upon disposal of equity investments, unrealized gains and losses on equity investments sold is transferred to retained…
On January 1, 2021, PORKING acquired majority of SAPER’s outstanding voting stocks. On that day, the (incomplete) working paper entries on that day were as follow WPE#1 Dr: Ordinary shares of SAPER 300,000 Dr: APIC of SAPER 300,000 Dr: RE of SAPER 375,000 Cr: Investment in SAPER ? Cr: Non-controlling interest ? WPE#2 Dr: Assets of SAPER 174,500 Cr: Investment in SAPER 113,425 Cr: Non-controlling interest ? WPE#3 Dr: Goodwill ? Cr: Investment in SAPER 74,075 Cr: Non-controlling interest ? Group of answer choices a.None of the choices b.50% c.100% d.75%
Olaf Company currently owns 4,000 shares of Elsa Inc. and $50,000 bonds of Carrot Corporation. Olaf uses a different T-account for each security held. The existing investments are presented in the 2020 balance sheet as follows: FVTPL financial assets-equity, Elsa $192,000 20,000 Valuation Adjustment on FVTPL financial assets-equity, Elsa $ 212,000 FVTPL financial assets debt, Carrot $50,000 (2.000) Valuation Adjustment on FVTPL financial assets-debt, Carrot Total investments 48.000 $ 260,000 In 2021, the following transactions occurred: Jan 2 Purchased 5,000 shares of Anna Corporation for $60,000. The shares will be held for trading purposes. Feb 15 Received $1.30 per share cash dividend on Elsa Inc. ordinary shares. May 20 Jun 30 Paid $120,000 to acquire 3,000 shares (30% ownership) in Samantha Co. Received interest on Carrot Corporation bonds. The bonds have an annual interest of 8%. Interest is paid every June 30 and December 31. Sold all the Carrot Corporation bonds for $47,000.…
1.)During the year 2021,David Company purchased 1,000 shares of Goliath Company ordinary shares at P150 per share, plus transaction costs of P4,000. The shares acquired are designated as at fair value through other comprehensive income. At December 31, 2021, Goliath ordinary shares are selling at P180/share. During the year 2022,Davidl sold 400 shares at P195/share incurring P2,000 transaction costs on the sale. On December 31, 2022, the equity securities have fair value of P200/share.How much holding gain should David report in equity on Dec. 31, 2021? 2.)During the year 2021,David Company purchased 1,000 shares of Goliath Company ordinary shares at P150 per share, plus transaction costs of P4,000. The shares acquired are designated as at fair value through other comprehensive income. At December 31, 2021, Goliath ordinary shares are selling at P180/share. During the year 2022, David sold 400 shares at P195/share. On December 31, 2022, the equity securities have fair value of…