On January 1, Year 1, Peanut Limited has invested in equity and debt securitiesand recorded as "investment". Its investment portfolio for the year endedDecember 31, Year 1 is in the following table.AlmondРеcanWalnutType of securityEquityTrading$12,000$16,000EquityDebtClassificationAFSHTM$24,000$22,000$36,000$40,000CostMarket value as of Dec 31, Year 1All securities were obtained at par value. Debt security of Walnut payscoupon annually at the rate of 5%. During year 1, Peanut has received dividendfrom Almont and Pecan at the amount of $1,500 and $900, respectively.10.Determine investment account shown in Peanut's balance sheet as ofDecember 31, Year 1.11.Determine related item(s) in Peanut's income statement for the yearended December 31, Year 1.Item(s)AmountExplain/show your work?

Any investment in equity or debt by the company is initially recorded at fair value. Subsequently,…

All at par pays coupon annually at the rate of 5%. During year 1, Peanut has received dividend rom Almont and Pecan at the amount of $1,500 and $900, respectively. 10.Determine investment account shown in Peanut's balance sheet as of December 31, Year 1. 11.Determine related item(s) in Peanut's income statement for the year ended December 31, Year 1. Item(s) Amount Explain/show your work ? ? ?

All at par pays coupon annually at the rate of 5%. During year 1, Peanut has received dividend rom Almont and Pecan at the amount of $1,500 and $900, respectively. 10.Determine investment account shown in Peanut's balance sheet as of December 31, Year 1. 11.Determine related item(s) in Peanut's income statement for the year ended December 31, Year 1. Item(s) Amount Explain/show your work ? ? ?

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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