What amount of unrealized loss should be shown as component of other comprehensive income in the 2017 statement of comprehensive income? * Five Co. holds debt securities within a business model whose objective is achieved both by collectingcontractual cash flows and selling the debt securities. The contractual cash flows are solely payments ofprincipal and interest on specified dates. 5-year, P1,000,000, 7% bonds, were purchased on December 31,2014, for P1,086,565. The bonds were purchased to yield 5% interest. The following schedule presents theamortized cost and fair value of the bonds at year-end:December 31, 2015December 31, 2016December 31, 2017December 31, 2018December 31, 2019Fair Value Amortized Cost1,070,8931,054,4381,037,1601,019,0181,000,0001,065,0001,075,0001,056,5001,030,0001,000,000

Solution: Accumulated other comprehensive income on Dec 31, 2016 = Fair value - Amortized costs =…

Answered: Five Co. holds debt securities within a…

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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Under IFRS, receivables are to be reported on the balance sheet at: a. amortized cost. b. amortized cost adjusted for estimated loss provisions. c. historical cost. d. replacement cost.
During the accumulation period, how is the interest credited to an annuity generally taxed in regard to its owner, if the owner is an individual? A) Taxed as ordinary income B) It is tax-deferred and excluded from current taxation Oc) Taxed as capital gains D) Treated as tax losses
What is the difference between a ‘net capital gain’ and a ‘capital gain, and between a ‘net capital loss’ and a ‘capital loss’? Are net capital losses deductible?
How would you differentiate items that are exempted from gross income and items deductible from gross income?
4
Which of the following items isreported net of related income taxes?a. Gain or loss from discontinued operations.b. Gain or loss from disposal of property, plant, andequipment.c. Interest on long-term debt.d. Gain or loss from early extinguishment of debt.
Which of the following is not included in the computation of profit or loss? Interest Expense on Plan Assets Actuarial Gains or Losses Settlement Gains or Losses Interest Expense on Asset Ceiling
How much is the additional loss, related to the return of the asset to itsoriginal classification as non-current, shall be reported in the 2022statement of comprehensive income
Temporary book-tax differences include (mark all that apply) A. Accrued income B. Accrued expenses c. Depreciation on fixed assets D. E. Tax credits F. All of these G. None of these Net operating losses
A purpose of an adjustment to income is to (option: a.reduce gross income? b. help determine gross income? c. reduce tax owed after tax has been determined?). Another purpose of an adjustment to income is to (option: a. help determine adjusted gross income? b. calculate taxable income after agi has been determined? c. be subtracted after agi to help determine taxable income?)
To arrive at the accumulated taxable income, which of the following items does not represent a positive adjustment? A. Capital loss carryovers В. Net operating loss deduction С. Capital losses in excess of capital gains D. Dividends received deduction
what is the difference between pretax financial income and taxable income? Explain the meaning of temporary and permanent differences. Give at least two unique examples of each

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