On January 1, 2021, Jeremiah Company purchased trading equity investments which are irrevocably designated at FVPL: Security Purchase price Transaction costs Fair value, Dec. 31, 2021 A P1,000,000 P100,000 P1,500,000 2,000,000 200,000 2,400,000 C 4,000,000 400,000 4,700,000 On July 5, 2020, the entity sold Security C amounting to P5,200,000.
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Determine the net gain/loss reported on the income statement on December 31, 2021?
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- During 2021, Lavida Loca Company purchased trading securities with the following cost and market value on December 31, 2021. Cost Market value A 300,000 400,000 B 1,500,000 1,700,000 C 3,800,000 3,900,000 The entity sold Investment C on January 10, 2022 for P 4,000,000 What is the unrealized gain or loss should be reported in the income statement for 2021? a. 100,000 gain b, 100,000 loss c. 400,000 gain d. 400,000 lossOn January 1, 2021, Jeremiah Company purchased trading equity investments which are irrevocably designated at FVPL: Security Purchase price Transaction costs Fair value, Dec. 31, 2021 A P1,000,000 P100,000 P1,500,000 B 2,000,000 200,000 2,400,000 C 4,000,000 400,000 4,700,000 On July 5, 2021, the entity sold Security C amounting to P5,200,000. Requirements: Determine the unrealized gain/loss on December 31, 2021? Determine the net gain/loss reported on the income statement on December…In 2019, Josiah Company purchased nontrading equity in investments which are irrevocably designated at FVOCI: Purchased Price Transaction Cost Market Value on Dec. 31, 2019Security A 1,500,000 120,000 1,800,000Security B 2,200,000 190,000 3,000,000Security C 3,500,000 250,000 4,000,000 On March 15, 2020, the entity sold Security A for 2,500,000.What amount of gain on sale should be received in the income statement for 2020? choices 800,000 500,000 300,000 0
- In 2019, Josiah Company purchased nontrading equity in investments which are irrevocably designated at FVOCI: Purchased Price Transaction Cost Market Value on Dec. 31, 2019 security a 1,500,000 120,000 1,800,000 security b 2,200,000 190,000 3,000,000 security c 3,500,000 250,000 4,000,000 On March 15, 2020, the entity sold Security A for 2,500,000.What amount of gain on sale should be received in the income statement for 2020?On January 1, 2020, Erika Company purchased equity investments held for trading.Purchase Price Market 12/31/20Security A 1,000,000 1,200,000Security B 2,000,000 1,500,000Securty C 3,000,000 3,100,000On July 1, 2021, the entity sold Security A for P1,400,000, incurring P50,000 in brokerage commission and taxes. What amount should be reported as gain onsale for trading securities in the 2021 Income Statement?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?
- Answer should be presented as: DECREASE 123456 or INCREASE 123456 During 2021, the first year of operations, Dejavu Company purchased the following equity securities: Market Value December 31, 2022 1,900,000 1,100,000 1,600,000 1,200,000 Security One Security Two Security Three Security Faur Cost 2,200,000 700,000 December 31, 2021 1,400,000 1,000,000 1,500,000 2,500,000 1,600,000 2,000,000 Security One and Security Two are held for trading and Security Three and Security Four are measured at Fair value through other comprehensive income by election. During 2022, the entity sold Security Two for P1,000,000 and half of Security Four for P500,000. Revenues and operating (marketing and administrative) expenses for the year 2022 are P7,500,000 and P4,000,000 respectively. How much is the change in Retained Earnings for the year 2022 due to the equity securities (indicate whether increase or decrease)?Answer should be presented as: DECREASE 123456 or INCREASE 123456 :During 2021, the first year of operations, Dejavu Company purchased the following equity securities: Security One Security Two Security Three Security Four Cost 2,200,000 700,000 1,600.000 2,000,000 December 31, 2021 1,400,000 1,000,000 1,500.000 Market Value December 31, 2022 1,900,000 1,100,000 1,600,000 1,200,000 2,500.000 Security One and Security Two are held for trading and Security Three and Security Four are measured at Jair value through other comprehensive income by election. During 2022, the entity sold Security Two for P1,000,000 and half of Security Four for PS00,000. Revenues and operating (marketing and administrative) expenses for the year 2022 are P7500,000 and P4,000,000 respectively. How much is the change in Retained Earnings for the year 2022 due to the equity securities findicate whether increase or decrease)?Glenn Company acquired equity securities during the year 2018 and designated as fair value to other comprehensive income. An analysis of the investments on December 31, 2020 showed the following:Securities Cost MarketA P 1,500,000 PI,400,000B 2,200,000 2,000,000C 3,000,000 2,900,000D 3,800,000 3,600.000Total 10,500,000 9,900,000If the Company's income tax rate is 35%, what amount of unrealized loss should be reported in Glenn's December 31, 2020 shareholders' equity? a. none b. 200,000 c. 390,000 d. 600,000
- At December 31, 2018, Hull-Meyers Corp. had the following investments that were purchased during 2018, itsfirst year of operations:Cost Fair ValueTrading Securities:Security A $ 900,000 $ 910,000Security B 105,000 100,000Totals $ 1,005,000 $ 1,010,000 Securities Available-for-Sale:Security C $ 700,000 $ 780,000Security D 900,000 915,000Totals $ 1,600,000 $ 1,695,000Securities to Be Held-to-Maturity:Security E $ 490,000 $ 500,000Security F 615,000 610,000Totals $ 1,105,000 $ 1,110,000No investments were sold during 2018. All securities except Security D and Security F are considered shortterminvestments. None of the fair value changes is considered permanent.Required:Determine the following amounts at December 31, 2018.1. Investments reported as current assets2. Investments reported as noncurrent assets3. Unrealized gain (or loss) component of income before taxes4. Unrealized gain (or loss) component of accumulated other comprehensive income in shareholders’ equityOn December 21, 2025, Pina Company provided you with the following information regarding its equity investments. Clemson Corp. stock Colorado Co.stock e Investments Buffaloes Co.stock Total of portfolio Previous fair value adjustment balance Fair value adjustment-Cr. TU December 31, 2025 2025 Cost $20,400 10,900 20,400 $51,700 Fair Value Adjustment Fair Value Account Titles and Explanation $19.300 Unrealized Holding Gain or Loss -Income 9,800 20,990 During 2026, Colorado Co. stock was sold for $10,350. The fair value of the stock on December 31, 2026, was Clemson Corp.stock- $19,390, Buffaloes Co. stock-$20,900. None of the equity investments result in significant influence. $50,090 Unrealized Gain (Loss) $(1,100) (1,100) 590 (List oll 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.) (1,610) Prepare the…ABC Co. acquired equity securities on May 25, 2020. The acquisition did not result in significant influence over the investee company. The fair value of the investment at December 31, 2020 was $76,000 and $108,000 at December 31, 2021.The adjustment to the Fair Value Adjustment account at December 31, 2021 would be? a. $8,000 debit. b. $32,000 debit. c. $32,000 credit. d. $8,000 credit.