which were acquired during Year 2 for a total consideration of Inn Corporation had 30,000 ordinary shares of NPA Company P1,800,000, including P30,000 directly attributable costs. The shares were held for some anticipated long-term benefits and are not intended for immediate sale. Inn Corporation exercised its option to recognize the change in the equity investments' fair value through other comprehensive income. On December 31, Year 2, the NPA shares were selling at P65 per share. In July Year 3, Inn Corporation received a 20% bonus issue. Subsequently during the year, it sold 15,000 shares at 70 per share. The fair value of NPA ordinary at December 31, Year 3 was P72 per share. REQUIRED: What is the amount that will be shown in the equity section of the statement of financial position at December 31, Year 3 relating to the investment account?

which were acquired during Year 2 for a total consideration of Inn Corporation had 30,000 ordinary shares of NPA Company P1,800,000, including P30,000 directly attributable costs. The shares were held for some anticipated long-term benefits and are not intended for immediate sale. Inn Corporation exercised its option to recognize the change in the equity investments' fair value through other comprehensive income. On December 31, Year 2, the NPA shares were selling at P65 per share. In July Year 3, Inn Corporation received a 20% bonus issue. Subsequently during the year, it sold 15,000 shares at 70 per share. The fair value of NPA ordinary at December 31, Year 3 was P72 per share. REQUIRED: What is the amount that will be shown in the equity section of the statement of financial position at December 31, Year 3 relating to the investment account?

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

Chapter15: Contributed Capital

Section: Chapter Questions

Problem 1MC

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which were acquired during Year 2 for a total consideration of Inn Corporation had 30,000 ordinary shares of NPA Company P1,800,000, including P30,000 directly attributable costs. The shares were held for some anticipated long-term benefits and are not intended for immediate sale. Inn Corporation exercised ite option to recognize the change in the equity investments' fair value through other comprehensive income. On December 31, Year 2, the NPA shares were selling at P65 per share. In July Year 3, Inn Corporation received a 20% bonus issue. Subsequently during the year, it sold 15,000 shares at 70 per share. The fair value of NPA ordinary at December 31, Year 3 was P72 per share. REQUIRED: Give all entries relating to the foregoing for Year 3. The company has the policy of transferring to rėtained earnings the cumulative balance in equity (resulting from the change in fair value) when the investment is derecognized. (a) HouL
Inn Corporation had 30,000 ordinary shares of NPA Company which were acquired during Year 2 for a total consideration o P1,800,000, including P30,000 directly attributable costs, Th shares were held for some anticipated long-term benefits and are not intended for immediate sale. Inn Corporation exercised ite option to recognize the change in the equity investments' fair value through other comprehensive income. On December 31, Year 2, the NPA shares were selling at P65 per share. In July Year 3, Inn Corporation received a 20% bonus issue. Subsequently during the year, it sold 15,000 shares at 70 per share. The fair value of NPA ordinary at December 31, Year 3 was P72 per share. REQUIRED: At what amount should the investment be shown on December 31, Year 3 statement of financial position?
Inn Corporation had 30,000 ordinary shares of NPA Company which were acquired during Year 2 for a total consideration os P1,800,000, including P30,000 directly attributable costs. The shares were held for some anticipated long-term benefits and are not intended for immediate sale. Inn Corporation exercised its option to recognize the change in the equity investments' fair value through other comprehensive income. On December 31, Year 2, the NPA shares were selling at P65 per share. In July Year 3, Inn Corporation received a 20% bonus issue. Subsequently during the year, it sold 15,000 shares at 70 per share. The fair value of NPA ordinary at December 31, Year 3 was P72 per share. REQUIRED: How much shall be reported as total income in profit or loss for Year 3 as a result of this investment?
Blush Company has the ability to exercise significant when the fair value of net assets was P20,000,000. outstanding ordinary shares of an investee for P4,000,000 On July 1, 2020 Blush Company purchased 20% of the influence over the operating and financial policies of the investee. The following data concerning the investee are available: 12 months ended December 31, 2020 December 31, 2020 6 months ended Net income Dividend declared and paid 3,000,000 1,900,000 1,600,000 1,000,000 in the income statement for the year ended December 31, o020, what amount of income should be reported from the investment?
Z Corporation has the following transactions relating to its investment during 2020: Jan 5 Acquired 16,000 shares of Y company for P1,500,000 paying an additional P10,000 for brokerage and P5,000 for commission. Feb 14 Received dividends from Y company declared January 10,2020 to the stockholders of records January 31,2020, P16,000. Required:prepare all the necessary entries assuming the investment is 1. Financial asset at Fair Value through profit and loss 2. Financial asset at Fair Value through other comprehensive income
On March 1, 2022, Dolor Company purchased 5,000 shares of Susan Incorporated paying P12 each share including P2 per share transaction cost. The shares were designated as financial asset through other comprehensive income. These shares are selling at P15 per share on December 31, 2022. How much is the amount of unrealized gain (loss) in comprehensive income for the period ending December 31, 2021?
On January 25, 2023, Martin Ltd. purchased 5,000 common shares of NBC (National Bank of Canada) for $30 each. During the remainder of 2023, Martin received $1.60/share in dividends and NBC's earnings per share were $4.50. The closing price of the shares on the fiscal year-end date of December 31, 2023, was $31. Required Assume that Martin classified the investment as FVPL. a. At what value should the company report the NBC shares on its December 31, 2023, balance sheet? b. How much income should the company report in relation to these shares? c. How much other comprehensive income (OCI) should Martin report in relation to these shares? Requirement a. Assume that Martin classified the investment as FVPL. At what value should the company report the NBC shares on its December 31, 2023, balance sheet? The company should report the NBC shares at per share for a total of $ at December 31, 2023. Requirement b. Assume that Martin classified the investment as FVPL. How much income should the co
On July 1, 2021, JKJ Corporation purchased 100 common shares of JMK Ltd. at $20 per share. JKJ expected to be able to sell this investment within a year at $28 per share. Dividends of $1 per share were declared and paid on August 1, 2021. On December 31, 2021, the fair value of each share was $23. What balance was shown in the investment account on JKJ's balance sheet on December 31 (year end)? $2,300 $2,400 $2,000 $2,800
On January 1, 2021, TAPANG Company acquired 5,000 shares of FVOCI securities of AKO Company at P100,000 plus brokerage expense of P10,000. On February 14, 2021, AKO Company ordinary share was split on a 4-for-2 basis. The fair value at December 21, 2021 amounted to P20 per share. Compute for the total number of shares at the end of the year. Compute for the unrealized gain or (loss) to be presented in the other comprehensive income for the current year. Prepare all the necessary journal entries.
On January 1, 2021, Tan Beda Company acquired 10% of the 100,000 outstanding voting shares of Taint Dude Incorporated for P1,000,000. These shares were designated as equity investments at fair value through other comprehensive income. Taint Dude Incorporated declared and paid dividends of P250,000 in 2021 and reported net income of P2,400,000. At the end of 2021, the shares had fair value of P110 per share. July 1, 2022, Tan Beda Company purchased additional 16,500 shares of Taint Dude for P1,856,250 plus P10,000 brokers commission. Taint Dude Incorporated declared and paid P1,200,000 cash dividends on February 2022 and P2.50 per share dividend in August 2022. While net income reported during 2022 was P4,000,000 with P2,000,000 earned in the first half of the year. Net amount reported in profit or loss in 2021 is?
On January 1, 2021, Tan Beda Company acquired 10% of the 100,000 outstanding voting shares of Taint Dude Incorporated for P1,000,000. These shares were designated as equity investments at fair value through other comprehensive income. Taint Dude Incorporated declared and paid dividends of P250,000 in 2021 and reported net income of P2,400,000. At the end of 2021, the shares had fair value of P110 per share. July 1, 2022, Tan Beda Company purchased additional 16,500 shares of Taint Dude for P1,856,250 plus P10,000 brokers commission. Taint Dude Incorporated declared and paid P1,200,000 cash dividends on February 2022 and P2.50 per share dividend in August 2022. While net income reported during 2022 was P4,000,000 with P2,000,000 earned in the first half of the year. How much should the investment reported in the statement of financial position at the end of 2022?
On January 1, 2021, Tan Beda Company acquired 10% of the 100,000 outstanding voting shares of Taint Dude Incorporated for P1,000,000. These shares were designated as equity investments at fair value through other comprehensive income. Taint Dude Incorporated declared and paid dividends of P250,000 in 2021 and reported net income of P2,400,000. At the end of 2021, the shares had fair value of P110 per share. July 1, 2022, Tan Beda Company purchased additional 16,500 shares of Taint Dude for P1,856,250 plus P10,000 brokers commission. Taint Dude Incorporated declared and paid P1,200,000 cash dividends on February 2022 and P2.50 per share dividend in August 2022. While net income reported during 2022 was P4,000,000 with P2,000,000 earned in the first half of the year. Net amount reported in profit or loss in 2021 is? How much should the investment reported in the statement of financial position at the end of 2022?