38. 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?

38. 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?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Ivanhoe had the following transactions and events during 2024: Feb. 2 Repurchased 800 shares for…

A: Journal entries are fundamental records used in accounting to capture financial transactions. Both…

Q: How much is the cost of investment? * On January 31. 2022. Parent Company purchased al the…

A: SOLUTION COST OF INVESTMENT MEANS CONTRACT PURCHASE PRICE OF INVESTMENTS ACQUIRED , ACQUISITION…

Q: On March 31, 2021, Chow Brothers, Inc., bought 6% of KT Manufac ended December 31, 2021, was $81.6…

A: A typical journal entry includes a date, a description of the transaction, and one or more debit and…

Q: ABC Corp holds 1,000 shares of XYZ Corp.'s shares since 2019. The following are data available at…

A: If investment in equity stocks are designated as FVOCI (Fair value through other comprehensive…

Q: 25) ABC Corporation purchased 30,000 shares of common stock of the XYZ, Inc. for $50 per share on…

A: Percentage of holding = 30,000 / 100,000 * 100 Percentage of holding = 30%

Q: The following information was obtained from the financial records of Roger Ltd for the year ended 30…

A: Statement showing changes in equity: It is a financial statement showing the details of the change…

Q: Cullumber Rental Corporation had the following balances in its shareholders' equity accounts at…

A: Journal entries refer to recording and classyfing business transactions into books of accounts…

Q: Sunland Company owns 29000 of the 50000 outstanding shares of Taylor, Inc. common stock. During…

A: Investment revenue is based on the percentage of ownership and the total revenue of the company.…

Q: In 2019, Avalanche Corporation has $70,000 of net income from operations during the current year. In…

A: The dividends received deduction (DRD) is a federal tax deduction in the U.S. that is given to…

Q: On December 31, 2019, the Bradshaw Corporation had $515,000 as an ending balance for its retained…

A: To calculate the net profit earned, we need to consider the changes in retained earnings and…

Q: During 2024, R2D2 Company purchased 10,000 shares of Goliath, Inc. for $30 per share and classified…

A: Unrealized profit and loss means The value of an investment that has not yet been sold or realized…

Q: Sheridan Corporation purchased 43020 shares of common stock of the Splish Corporation for $50 per…

A: The possibility for financial gains is one of the main justifications for investing in another…

Q: In 2020, Avalanche Corporation has $70,000 of net income from operations during the current year. In…

A: In order to minimize multiple layers of taxation, a corporation may receive a tax deduction for a…

Q: M.T. Glass, Inc. purchased the following investments on January 1, 2028: 1. 21,000 shares…

A: Introduction:If an investor company makes an investment between 20 to 50% in the investee company…

Concept explainers

Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.

Question

38. 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?

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

please help me
At the beginning of 2022, Rose, Inc. purchased 8000 ordinary shares of Mark, Inc. for $800,000. The shares were designated as FVOCI investment. On July 31, 2022, Rose, Inc. sold all of its Mark, Inc.’s shares for $1,200,000. How much will be closed to Retained Earnings at the end of 2022 as a result of this sale?
Choose the correct answer: Westlife Company acquired on July 1, 2020, 30,000 ordinary shares of Lucy Company for P40 per share. Lucy has 100,000 outstanding ordinary shares on that date. Lucy’s net income for the year ended December 31, 2020 was P2,400,000, earned evenly throughout the year. Lucy paid dividends in the amount of P800,000 to its ordinary shareholders at December 31, 2020. What amount of income from the investment should Westlife report in its 2020 income statement? Remember the shares were acquired July 1 so right over the associate starts only from July 1. P720,000 c. P240,000 P360,000 d. P120,000
In 2020, Merced, Inc. (a C-corporation) had net operating income of $20,000. During 2021, Merced also had long-term capital gains of $50,000 and long-term capital losses of $65,000. In addition, Merced, Inc. received a $70,000 dividend from Dolphin, Inc. in 2020. Merced owns 25% of the shares of Dolphin. Note: the operating income only includes revenue and expenses directly related to operations (it does not include any capital transactions or dividends). Determine Merced’s tax liability of 2020.
S16-9 On January 6, 2023, Ling Corp. paid $5,000,000 for its 40 percent investment in True World Inc. Assume that on December 31 that same year, True World earned net income of $1,800,000 and paid cash dividends of $800,000. What method should Ling Corp. use to account for the investment in True World Inc.? Give your reason. Ignore any brokerage commission expenses. Post to the Investment in True World Inc. Common Shares T- account. What is its balance after all the transactions are posted? Journalize these three transactions on the books of Ling Corp. Include an explanation for each entry.
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
In 2020, Merced, Inc. (a C-corporation) had net operating income of $20,000. During 2021, Merced also had long-term capital gains of $50,000 and long-term capital losses of $65,000. In addition, Merced, Inc. received a $70,000 dividend from Dolphin, Inc. in 2020. Merced owns 25% of the shares of Dolphin. Note: the operating income only includes revenue and expenses directly related to operations (it does not include any capital transactions or dividends). What is Merced’s taxable income for 2020?
Please answer in good accounting form. Thankyou What is the retained earnings balance ending December 31, 2021?
On April 15, 2023, Rizzo Inc. purchased 34,500 shares of Hernandez, Inc. for $22 per share (passive interest). During the year Rizzo Inc. sold 4,500 shares of Hernandez, Inc. for $25 per share. Rizzo Inc. started operations on January 1, 2023. At December 31, 2023 the market price of Hernandez, Inc.’s stock was $19 per share. What is the total amount of unrealized gain (loss) that Rizzo Inc. will report through its income statement for the year ended December 31, 2023 related to its investment in Hernandez, Inc. stock?
On January 1, 2020, Churl Company paid $1,700,000 for a 40% stake in Flip Company. The Flip Company's stockholders equity on January 1 and December 31, 2020 is shown below: Share capital Revaluation surplus Retained earnings January 1 3,000,000 1,000,000 December 31 3,000,000 1,300,000 1,500,000 By Jan 1, 2020, all of Flip's identified assets and liabilities were recognized at fair value. During the current fiscal year, the flip firm recorded a profit before income tax of 1,000,000 and paid dividends to stockholders of 150,000. The revaluation excess is the outcome of Flip Company's land reassessment on December 31, 2020. Flip displays OCI net of any relevant income tax. Furthermore, Flip Company provides depreciation using the declining balance approach, whereas Churl Company employs a straight line. The cumulative depreciation would have been enhanced by 200,000 if Flip Company had used the straight line. The tax rate is set at 35%. On December 31, 2020, Churl Company will report its…
H1.
On December 15, 2021, Blue Company paid $100,000 for 8,000 shares of Marble Company common stock. The ownership in Marble Company is 10%. Marble reported net income of $64,000 for the year ended December 31, 2021. The fair value of the Marble stock on that date was $54 per share. What amount will be reported in the balance sheet of Blue Company for the investment in Marble at December 31, 2021? Multiple Choice There is no correct answer. $387,000. $357,000. $372,000. $432,000.