Ef 459. An investor purchased stock on Sept 30th of the current year. When is the first day that this is considered a Long Term Investment? A.Sept 30 of the following year B. Sept 31 of the following year C. Oct 1 of the following year D. Oct 2 of the folllowing year

For tax purposes, the holding period to determine if a stock investment is long-term or short-term…

Answered: An investor purchased stock on Sept…

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 24GI

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Investments in Equity Securities Noonan Corporation prepares quarterly financial statements and invests its excess funds in marketable securities. At the end of 2018, Noonans portfolio of investments consisted of the following equity securities: Dunne the first half of 2019, Noonan engaged in the following investment transactions: Required: 1. Record Noonans investment transactions for January 6 through June 30, 2019. 2. Show the items of income or loss from investment transactions that Noonan reports for each of the first and second quarters of 2019. 3. Show how the preceding items are reported on the first and second quarter 2019 ending balance sheets, assuming that management expects to dispose of the Keene and Sachs securities within the next year.
An investor purchases 300 shares of a stock at a price of $75 per share. During the year, the investor receives dividends of $2.34 per share and then sells all the shares at the end of the year at a price of $79.60 per share. Calculate the investor's: a. Income b. Capital gain c. Total dollar return
Refer to the information in RE13-11. Assume that on December 31, 2019, the investment in Cornett Company stock has a market value of 10,500. Prepare the year-end journal entry to record the unrealized gain or loss.
An investor owned shares worth $800 on Jan 1. On June 30 of the same year, the shares are worth $750. The stock paid no dividends during this period. The investor is hopeful that by Dec 31 of the same year, the shares will regain their value of $800. For this to happen, what annual rate of return on the investment is necessary over the second half of the year? A. 6.25% B 6.67% C. 12.11% D. 12.50% E 13,78%
An investor purchases a stock for $50 and over the next year, receives a $0.75 dividend. At the end of the year, the stock is priced at $53. In the second year, the stock pays a $1.00 dividend and at the end of the year the stock is priced at $51. a. Compute the dollar return for each year. b. Compute the percentage return for each year.
You have received your investment portfolio year-end statement from your broker, Rich Waldman. All investments were purchased at the January prices and held the entire year. Portfolio Year-End Statement Investment Number Dividend Price—Jan. 1 Price—Dec. 31 FernRod Corp. 400 shares $.30 $38.38 $45.75 Crown Realty, Inc. 500 shares 0 $74.50 $70.13 Sterling Mines 200 shares $.24 $27.88 $29.25 SJB Enterprises 300 shares $3.00 $68.75 $64.63 GTech 7.125% 16 20 bonds $98.50 $101.38 Comet 9.875% 17 10 bonds $103.88 $100.75 Calculate how much profit or loss you made for the year, including stock dividends and bond interest. What was the total return on investment for your portfolio? Using a broker’s commission of 3% buying and 3% selling on the stocks and $5 buying and $5 selling per bond, how much profit or loss would you make if you liquidated your entire portfolio at the December 31 prices? What would be the return on investment?
An investor purchased 100 shares of Mallard common stock at $20 per share on March 15 of Year 1. On December 31 of Year 1, the stock was quoted at $19 per share and Mallard declared and paid a dividend of $1.50 per share. On June 5 of Year 2, the investor sold all 100 shares for $22 per share. On December 31 of each year, the Fair Value Adjustment account is adjusted. Assuming the investment is measured at FV-NI, provide the journal entries to be made at each of the following dates. a. March 15, Year 1. b. December 31, Year 1. c. June 5, Year 2. d. December 31, Year 2. Note: If a journal entry isn't required for the transaction, select "N/A—Debit" and "N/A―Credit" as the account names and leave the Dr. and Cr. answers blank (zero). Date Account Name (a) Mar. 15, Year 1 Investment in Stock Cash (b1) Dec. 31, Year 1 (b2) Dec. 31, Year 1 (c) June 5, Year 2 To record investment purchase. Cash Dividend Revenue To record dividends. Unrealized Gain or Loss-Income Fair Value Adjustment-Equity…
Investment in Trading Securities The following information relates to Sanders Companys investment in trading securities for 2019: Required: 1. Prepare journal entries to record the previous information for 2019. Use the effective interest method and round all amounts to the nearest dollar. Assume that Sanders prepares semiannual financial statement. 2. Show the items of income or loss from investment transactions that Sanders reports for each 2019 semiannual income statement. 3. Show how the investment items are reported on each of the 2019 semiannual balance sheets, assuming that management expects to dispose of all investments within one year of purchase.
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Trading Investments purchased for $10 were compared with the fair value of $8 at the end of the year. The journal entry to adjust the investments would include a: Group of answer choices credit to Valuation Allowance for Trading Investments $2. debit to Valuation Allowance for Trading Investments $2. credit to Unrealized Gain on Trading Investments $2. debit to Unrealized Gain on Trading Investments $2.
Subject : - Finanace An investor bought 10 shares of stock T for $800 per share. One year later, he sold the stock for $575 per share. Calculate the return on this investment
Amelia Earhart purchased a stock at a price of $54.82. The stock paid a dividend of $1.95 per share and the stock price at the end of the year was $61.24. What was the total return for the year?

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An investor purchased stock on Sept 30th of the current year. When is the first day that this is considered a Long Term Investment? A. Sept 30 of the following year B. Sept 31 of the following year C. Oct 1 of the following year D. Oct 2 of the folllowing year