Flounder Corporation, a clothing retailer, had income from operations (before tax) of $367,000, and recorded the following before-tax gains/losses) for the year ended December 31, 2023: Gain on disposal of equipment Unrealized (loss/gain on FV-NI investments (Loss)/gain on disposal of building Gain on disposal of FV-Nt investments 352.500 (25,380) (50,760) 63,920 Flounder also had the following account balances as at January 1, 2023 Retained earnings Accumulated other comprehensive income (this was due to a revaluation surplus on land) Accumulated other comprehensive income (this was due to gains on FV-OCI debt investments) $31,020 61.040 385,400 As at January 1, 2023, Flounder had one piece of land that had an original cost of $142,000 that it accounted for using the revaluation model. It was most recently revalued to fair value on December 31, 2022, when its carrying amount was adjusted to fair value of $203.040. In January 2023, the piece of land was sold for proceeds of $203,040. In applying the revaluation model, Flounder maintains the balance in the Revaluation Surplus (OCD) account until the asset is retired or disposed of In 2018. Flounder purchased a portfolio of debt investments that the company intended to hold for the longer term and it classified the portfolio of investments as FV-OCI with gains/losses recycled through net income. The investments in the portfolio are traded in an active market. Flounder records unrealtred gains and losses on these investments as OCI, and then books these gains and losses to net income when they are impaired or sold. The portfollo's carrying amount on December 31, 2022. was $103.400. The entire portfolio was sold in November 2023 for proceeds of $118.440
Flounder Corporation, a clothing retailer, had income from operations (before tax) of $367,000, and recorded the following before-tax gains/losses) for the year ended December 31, 2023: Gain on disposal of equipment Unrealized (loss/gain on FV-NI investments (Loss)/gain on disposal of building Gain on disposal of FV-Nt investments 352.500 (25,380) (50,760) 63,920 Flounder also had the following account balances as at January 1, 2023 Retained earnings Accumulated other comprehensive income (this was due to a revaluation surplus on land) Accumulated other comprehensive income (this was due to gains on FV-OCI debt investments) $31,020 61.040 385,400 As at January 1, 2023, Flounder had one piece of land that had an original cost of $142,000 that it accounted for using the revaluation model. It was most recently revalued to fair value on December 31, 2022, when its carrying amount was adjusted to fair value of $203.040. In January 2023, the piece of land was sold for proceeds of $203,040. In applying the revaluation model, Flounder maintains the balance in the Revaluation Surplus (OCD) account until the asset is retired or disposed of In 2018. Flounder purchased a portfolio of debt investments that the company intended to hold for the longer term and it classified the portfolio of investments as FV-OCI with gains/losses recycled through net income. The investments in the portfolio are traded in an active market. Flounder records unrealtred gains and losses on these investments as OCI, and then books these gains and losses to net income when they are impaired or sold. The portfollo's carrying amount on December 31, 2022. was $103.400. The entire portfolio was sold in November 2023 for proceeds of $118.440
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:Your answer is partially correct.
Will the sum of the Accumulated Other Comprehensive Income and Retained Earnings under IFRS equal the balance of Retained
Earnings under ASPE at December 31, 2023? Prepare a continuity schedule of the related accounts to demonstrate your answer.
The sum of the AOCI and Retained Earnings under IFRS equal the balance of Retained Earnings under ASPE as follows:
on Surplus on Land
stments during 2023
eTextbook and Media
AOCI
446440
(61,040)
(25,3000
035.660)
IFRS
$
Retained Earnings
31.030
61,040
25,300
35.660
1014660
1106.720
$
ASPE
Retained Earnings
Attempts: 2 of 3 used
1.127400
25.300
35.660
690,000
1.104.720
Submit Answer
Transcribed Image Text:Flounder Corporation, a clothing retailer, had income from operations (before tax) of $367,000, and recorded the following before-tax
gains/(losses) for the year ended December 31, 2023:
Gain on disposal of equipment
Unrealized (loss/gain on FV-NI investments
(Loss)/gain on disposal of building
Gain on disposal of FV-NI investments
352.500
(25,380)
(50,760)
63,920
Flounder also had the following account balances as at January 1, 2023
Retained earnings
Accumulated other comprehensive income (this was due to a revaluation surplus on land)
Accumulated other comprehensive income (this was due to gains on FV-OCI debt investments)
$31,020
61.040
385,400
As at January 1, 2023, Flounder had one piece of land that had an original cost of $142,000 that it accounted for using the revaluation
model. It was most recently revalued to fair value on December 31, 2022, when its carrying amount was adjusted to fair value of
$203,040, In January 2023, the piece of land was sold for proceeds of $203,040. In applying the revaluation model, Flounder
maintains the balance in the Revaluation Surplus (OCD) account until the asset is retired or disposed of
In 2018. Flounder purchased a portfolio of debt investments that the company intended to hold for the longer term and it classified
the portfolio of investments as FV-OCI with gains/losses recycled through net income. The investments in the portfolio are traded in
an active market. Flounder records unrealized gains and losses on these investments as OCI, and then books these gains and losses to
net income when they are impaired or sold. The portfollo's carrying amount on December 31, 2022, was $103.400 The entire
portfolio was sold in November 2023 for proceeds of $118.440
Flounder's income tax expense for 2023 was $93,060. Flounder prepares financial statements in accordance with IFRS
F
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education