Cloud 9 Inc. has equity securities designated as at fair value through profit or loss that were purchased during 2020. At the end of 2020, the securities had a total fair value of P525,000. As of December 31, 2021, the cost and fair values are as follows: Investment Cost Fair Value P100,000 P 90,000 1 2 190,000 210,000 3 250,000 235,000 The gain or loss that would be reported in profit or loss as a result of the valuation of the securities at the end of 2021 is? (A P5,000 B P25,000 P10,000 P20,000

Cloud 9 Inc. has equity securities designated as at fair value through profit or loss that were purchased during 2020. At the end of 2020, the securities had a total fair value of P525,000. As of December 31, 2021, the cost and fair values are as follows: Investment Cost Fair Value P100,000 P 90,000 1 2 190,000 210,000 3 250,000 235,000 The gain or loss that would be reported in profit or loss as a result of the valuation of the securities at the end of 2021 is? (A P5,000 B P25,000 P10,000 P20,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Indicate the statement presentation of each class of securities and any related unrealized gain (loss) accounts.
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On its December 31, 2020 balance sheet, a company correctly reported a $89,000 debit balance in its Fair Value Adjustment (Available-for-Sale) account. There was no change during 2021 in the composition of the company’s portfolio of available-for-sale securities. At the end of 2021, the following information pertains to the portfolio: Cost at 12/31/21 Fair value at 12/31/21 $269,000 $154,000 The unrealized gain/loss to appear as a component of comprehensive income for the year ending December 31, 2021 is $____________. (Very Important: if you obtain an unrealized holding loss, then you need to put a minus sign in front of the amount. If you obtain an unrealized holding gain, then no plus or minus sign is needed.)
At the beginning of 2019, Ace Company had the following portfolio of investments in available-for-sale debt securities (all of which were acquired at par value): Security Cost 1/1/19 Fair Value A $35,000 $44,000 B 53,000 50,000 Totals $88,000 $94,000 During 2019, the following transactions occurred: Transactions: May 3 Purchased C debt securities at their par value for $50,000. July 1 Sold all of the A securities for $44,000 plus interest of $1,000. Dec. 31 Received interest of $1,000 on the B and C securities. Additionally the following information was available: Security 12/31/19 Fair Value B $58,000 C 53,000 1.What is the balance in the Unrealized Holding Gain/Loss account on December 31, 2019? fill in the blank
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2. During 2020, Earl Company purchased debt securities as a long-term investment and classified them as trading. All securities were purchased at par value. The following information is presented: Market value at Security 12/20/2020 cost $ 30,000 $ 28,000 40,000 83,000 $151,000 B. 50,000 100,000 Totals $180,000 The net holding gain or loss included in Earl's income statement for the year should be?
Kk95.
A company buys a debt investment for $316, 000. At the end of 2023, the amortized cost of the investment is $315,000 and the fair value of the investment is $322, 000. The company intends to hold the investment until maturity and does not intend to use the fair value option. Therefore, the company must report the investment at $316,000 on its 2023 year-end balance sheet. True or False
Subject: acounting
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