On December 31, 2024, Oriole Company purchased debt securities as trading securities. Pertinent data are as follows: Fair Value Security Cost At 12/31/25 A $128400 $114500 B 167500 182400 C 284400 258500 On December 31, 2025, Oriole transferred its investment in security Ċ from trading to available-for-sale because Oriole intends to retain security C as a long-term investment. What total amount of gain or loss on its securities should be reported in Oriole's income statement for the year ended December 31, 2025? O $24900 loss O $1000 gain O $25900 loss O $39800 loss

On December 31, 2024, Oriole Company purchased debt securities as trading securities. Pertinent data are as follows: Fair Value Security Cost At 12/31/25 A $128400 $114500 B 167500 182400 C 284400 258500 On December 31, 2025, Oriole transferred its investment in security Ċ from trading to available-for-sale because Oriole intends to retain security C as a long-term investment. What total amount of gain or loss on its securities should be reported in Oriole's income statement for the year ended December 31, 2025? O $24900 loss O $1000 gain O $25900 loss O $39800 loss

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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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?
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?
Some of Ivanhoe Corporation's investments in debt securities are classified as trading securities and some are classified as available for-sale. The cost and fair value of each category at December 31, 2022, were as follows. Trading securities Available-for-sale securities Cost Fair Value $95,000 $83,500 $59,000 $63,000 Unrealized Gain (Loss) $(11,500) $4,000 At December 31, 2021, the Fair Value Adjustment-Trading account had a debit balance of $2,200, and the Fair Value Adjustment- Available-for-Sale account had a credit balance of $6,000. Prepare the required journal entries for each group of securities for December 31, 2022. (List all debit entries before credit entries. 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 O for the amounts)
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Some of Crane Corporation's investments in debt securities are classified as trading securities and some are classified as available-for- sale. The cost and fair value of each category at December 31, 2022, were as follows. Cost Fair Value Unrealized Gain (Loss) Trading securities $96,500 $85,000 $(11,500) Available-for-sale securities $60,000 $63,000 $3,000 At December 31, 2021, the Fair Value Adjustment-Trading account had a debit balance of $2,100, and the Fair Value Adjustment- Available-for-Sale account had a credit balance of $7,200. Prepare the required journal entries for each group of securities for December 31, 2022. (List all debit entries before credit entries. 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 O for the amounts.)
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Pina Ltd. holds equities securities in its portfolio and is accounting for those investments using the FV-NI method. On March 1, 2023, the company purchased 11000 shares of a publicly traded company for $4830000 and paid a commission (brokerage fee) of $4830 on the purchase transaction. What is the cost base of the investment to include for the recording of the portfolio value? O $4834830 O $4830000 O $4825170 O None of the choices are correct.
S&L Financial buys and sells securities which it classifies as available-for-sale. Assume that on December 27, 2024, S&L purchased Coca-Cola bonds at par for $745,000 and sold the bonds on January 3, 2025, for $748,500. At December 31, the bonds had a fair value of $742,500, and S&L has the intent and ability to hold the investment until fair value recovers. What pretax amounts did S&L include in its 2024 and 2025 net income as a result of this
Splendid Company purchased equity securities during 2020 to be held as investments. The cost and market value of the investments are Cost Market December 31, 2000 Trading securities 2.000.000 2.500.000 Securities not held for trading 3.000.000 2.500,000 December 31, 2021 Trading securities 2.000.000 2.200,000 Securities not held for trading 3,000.000 2.300,000 The securities not held for trading are measured at fair value through other comprehensive income by irevocable election. Requirement Complete the table below. Wrte zero (0) it is not applicable. December 31, 2019 December 31, 2020 December 31. 2021 Statement of Financial Position Investments - FVPL Investments - FVOCI Statement of Changes in Equity Cther Comprehensive Income Retained earnings Statement of Comprehensive Income Net income - Unrealized gainloss) Net income Realized gainloss) Cther Comprehensive income- Unrealized gainloss)
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On January 1, 2024, Everglade Company purchased the following debt securities and properly accounted for them as securities available-for-sale: Security Cost Fair Value, 12/31/2024 ABC $ 58,000 $ 74,800 DEF 91,800 83,000 XYZ 34,000 39,800 All declines in value are considered temporary. What amount should the Everglade Company report relative to these securities in its 2024 statement of other comprehensive income? Multiple Choice $0. $22,600 unrealized holding gain. $13,800 net unrealized holding gain. $8,800 unrealized holding loss.