21. During 2021, Opulence Company purchased marketable equity securities as short-term investment to be measured at fair value through other comprehensive income. The cost and market value on December 31, 2021 were: Security A 1,000 shares B 10,000 shares C 20,000 shares Cost 300,000 1,700,000 3,150,000 The entity sold 10,000 shares of B on January 5, 2022 for P 1,450,000 Market value 350,000 1,550,000 2,950,000 What total amount should be charged to Retained Earnings as a result of the sale of equity securities in 2022?
21. During 2021, Opulence Company purchased marketable equity securities as short-term investment to be measured at fair value through other comprehensive income. The cost and market value on December 31, 2021 were: Security A 1,000 shares B 10,000 shares C 20,000 shares Cost 300,000 1,700,000 3,150,000 The entity sold 10,000 shares of B on January 5, 2022 for P 1,450,000 Market value 350,000 1,550,000 2,950,000 What total amount should be charged to Retained Earnings as a result of the sale of equity securities in 2022?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:21. During 2021, Opulence Company purchased marketable equity securities as short-term investment to be
measured at fair value through other comprehensive income. The cost and market value on December 31,
2021 were:
Security
A 1,000 shares
B
10,000 shares
C 20,000 shares
Cost
300,000
1,700,000
3,150,000
The entity sold 10,000 shares of B on January 5, 2022 for P 1,450,000
Market value
350,000
1,550,000
2,950,000
What total amount should be charged to Retained Earnings as a result of the sale of equity securities in 2022?
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