52) Telecom Inc has decided to purchase the shares of Intron Inc. for $300,000 in cash on July 1, 2022. On the date, the balance sheets of each of these companies were as follows: Intron Inc Telecom Inc Cash and short-term securities Inventory Plant and equipment (net) Total assets Current liabilities Bonds payable Common shares Retained earnings Total liabilities and equity $920,000 150,000 330,000 $1,400,000 $420,000 700,000 180,000 100,000 $1,400,000 On that date, the fair values of Intron's assets and liabilities were as follows: Cash and short-term securities Inventory Plant and equipment (net) Current liabilities Bonds payable $200,000 20,000 180,000 $400,000 $90,000 200,000 60,000 50,000 $400,000 $200,000 $15,000 $400,000 $90,000 $210,000

52) Telecom Inc has decided to purchase the shares of Intron Inc. for $300,000 in cash on July 1, 2022. On the date, the balance sheets of each of these companies were as follows: Intron Inc Telecom Inc Cash and short-term securities Inventory Plant and equipment (net) Total assets Current liabilities Bonds payable Common shares Retained earnings Total liabilities and equity $920,000 150,000 330,000 $1,400,000 $420,000 700,000 180,000 100,000 $1,400,000 On that date, the fair values of Intron's assets and liabilities were as follows: Cash and short-term securities Inventory Plant and equipment (net) Current liabilities Bonds payable $200,000 20,000 180,000 $400,000 $90,000 200,000 60,000 50,000 $400,000 $200,000 $15,000 $400,000 $90,000 $210,000

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

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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In 2021, Milka Company purchased an investment in equity securities. The related data of December 31, 2021: Security No. of shares Initial Cost Fair value Transaction cost A 6,000 P300,000 P295,000 P15,000 B 8,000 280,000 260,000 20,000 C 10,000 400,000 458,200 20,000 The entity sold 2,400 shares of Security B on January 5, 2022, for P82,500. If measured at FVPL, how much is the unrealized gain in 2021?
In 2021, Milka Company purchased an investment in equity securities. The related data of December 31, 2021: Security No. of shares Initial Cost Fair value Transaction cost A 6,000 P300,000 P295,000 P15,000 B 8,000 280,000 260,000 20,000 C 10,000 400,000 458,200 20,000 The entity sold 2,400 shares of Security B on January 5, 2022, for P82,500. If measured at FVOCI, how much is the net effect on retained earnings in 2022?
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