Hello,How do I fill in the Statement of Income for this question?Thanks Espresso Ltd. is an investment management firm that had, at the beginning of the current year on January 1, 2021, a balance of$127,000 in its Trading Investments account (using the fair value through profit or loss model) and a balance of $526,000 in itsInvestment in Associates account (using the equity method). At the end of the year, these account balances were $139,000 and$637,000, respectively. During the year, dividends of $54,000 were received from associates while $11,000 was received from tradinginvestments. In addition, the company purchased investments in associates and trading investments for cash of $129,000 and$52,000, respectively. Also, during 2021, the company received $42,000 when it sold trading investments that it carried at $30,000. List the accounts that Espresso will show on its 2021 statement of income pertaining to its investments. Indicate where theseaccounts will appear on the statement of income. (Enter loss using either a negative sign preceding the number e.g. -2,945 orparentheses e.g. (2,945).)EspressoLtd.Statement of Income$tAtA

Introduction:- Calculation of Income from associate as follows under:- Income from associate

Espresso Ltd. is an investment management firm that had, at the beginning of the current year on January 1, 2021, a balance of $127,000 in its Trading Investments account (using the fair value through profit or loss model) and a balance of $526,000 in its Investment in Associates account (using the equity method). At the end of the year, these account balances were $139,000 and $637,000, respectively. During the year, dividends of $54,000 were received from associates while $11,000 was received from tra investments. In addition, the company purchased investments in associates and trading investments for cash of $129,000 and $52,000, respectively. Also, during 2021, the company received $42,000 when it sold trading investments that it carried at $30,00

Espresso Ltd. is an investment management firm that had, at the beginning of the current year on January 1, 2021, a balance of $127,000 in its Trading Investments account (using the fair value through profit or loss model) and a balance of $526,000 in its Investment in Associates account (using the equity method). At the end of the year, these account balances were $139,000 and $637,000, respectively. During the year, dividends of $54,000 were received from associates while $11,000 was received from tra investments. In addition, the company purchased investments in associates and trading investments for cash of $129,000 and $52,000, respectively. Also, during 2021, the company received $42,000 when it sold trading investments that it carried at $30,00

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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Question

Hello,

How do I fill in the Statement of Income for this question?

Thanks

Espresso Ltd. is an investment management firm that had, at the beginning of the current year on January 1, 2021, a balance of
$127,000 in its Trading Investments account (using the fair value through profit or loss model) and a balance of $526,000 in its
Investment in Associates account (using the equity method). At the end of the year, these account balances were $139,000 and
$637,000, respectively. During the year, dividends of $54,000 were received from associates while $11,000 was received from trading
investments. In addition, the company purchased investments in associates and trading investments for cash of $129,000 and
$52,000, respectively. Also, during 2021, the company received $42,000 when it sold trading investments that it carried at $30,000.

List the accounts that Espresso will show on its 2021 statement of income pertaining to its investments. Indicate where these
accounts will appear on the statement of income. (Enter loss using either a negative sign preceding the number e.g. -2,945 or
parentheses e.g. (2,945).)
EspressoLtd.
Statement of Income
$
tA
tA

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Hello, this is the next part of this question but I'm confused on how to solve it

Prove the ending balances in these accounts at December 31 by listing the beginning balance and all transactions for the year.
(Enter negative amounts using either a negative sign preceding the number e.g. -2,945 or parentheses e.g. (2,945).)
Account
Balance, beginning of year
Balance, end of year
<
<
Trading
Investments
$127,000
$139,000
Investment
in Associates
$526,000
$637,000

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