What is the recognized gain? Harland Investments has purchased a total of 340 sharesof BlueTech, Inc. common stock over the years. In 1995,Harland acquired 40 shares at a price of $25 per share.Later, in 2000, he bought 120 shares at $12 per share, andin 2015, he purchased 180 shares at $55 per share. In thecurrent year, 2016, Harland plans to sell 110 shares at amarket price of $65 per share. If Harland's objective is tominimize gain and assuming he can adequately identify.the shares to be sold, what is the recognized gain on thesale of these shares?

Explanation of Cost Basis: Cost basis represents the original purchase price of an investment plus…

Answered: Harland Investments has purchased 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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Jonah purchased 2% of Global Panda’s $15 par value common stock in 2017 for the market price of $20 per share. In 2017, Global Panda had 10,000 shares of common stock outstanding. In 2018, Global Panda issued a 6% stock dividend. In 2019, Global Panda issued a 3-for-1 stock split. In early 2020, Global Panda issued a 10% stock dividend. How many shares of Global Panda will Jonah own at the end of 2020?
During 2023, Elisabeth Ltd. purchased 8,000 shares of Lilly of the Valley Corp. for $34 per share ($272,000 total). Elisabeth held these shares until September 2025, when it sold them for $42 per share. During these three years, Lilly of the Valley paid dividends of $2 per share on July 31. On Elisabeth's fiscal year-end (December 31), shares of Lilly of the Valley closed at $39, $30, and $46 in 2023, 2024, and 2025, respectively. Required Assume that the company designated half of the Lilly of the Valley shares as FVPL and the other half irrevocably elected to record fair value changes through OCI. Determine the amounts to be reported on Elisabeth's balance sheet and statement of comprehensive income with respect to the company's investment in Lilly of the Valley Corp. What do you observe about the total amount of retained earnings for the three years combined? Complete the analysis for 2024. Balance sheet Financial asset Equity: AOCI on Lilly of the Valley shares* Retained earnings…
On January 2, 2019, SurfCity Co. purchased 15,000 shares of Topsail, Inc. for $20 per share. The investment represented 15% of Topsail's outstanding shares. On December 31, 2019, each share of Topsail was selling for $18 per share and on December 31, 2020, each share of Topsail was selling for $25 per share. Topsail declared and paid dividends totaling $25,000 in both 2019 and 2020. What was the total amount reported on the income statement in 2020 by SurfCity for its investment in Topsail? Group of answer choices $125,000 $78,750 $108,750 $100,000
Please given correct answer general Accounting
Stinson Corporation owned 30,000 shares of Matile Corporation. These shares were purchased in 2011 for $270,000. On November 15, 2015, Stinson declared a property dividend of one share of Matile for every ten shares of Stinson held by a stockholder. On that date, when the market price of Matile was $25 per share, there were 270,000 shares of Stinson outstanding. What gain and net reduction in retained earnings would result from this property dividend? Gain Net Reduction in Retained Earnings $0 $108,000 $513,000 $756,000 $432,000 $243,000 $432,000 $675,000
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On April 15, 2023, Rizzo Inc. purchased 34,500 shares of Hernandez, Inc. for $22 per share (passive interest). During the year Rizzo Inc. sold 4,500 shares of Hernandez, Inc. for $25 per share. Rizzo Inc. started operations on January 1, 2023. At December 31, 2023 the market price of Hernandez, Inc.’s stock was $19 per share. What is the total amount of unrealized gain (loss) that Rizzo Inc. will report through its income statement for the year ended December 31, 2023 related to its investment in Hernandez, Inc. stock?
Stinson Corporation owned 40,000 shares of Matile Corporation. These shares were purchased in 2017 for $360,000. On November 15, 2021, Stinson declared a property dividend of one share of Matile for every ten shares of Stinson held by a stockholder. On that date, when the market price of Matile was $28 per share, there were 360,000 shares of Stinson outstanding. What gain and net reduction in retained earnings would result from this property dividend? Net Reduction in Gain Retained Earnings a. $0 $ 324,000 b. $0 $1,008,000 c. $684,000 $ 324,000 d. $684,000 $ 144,000
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On January 18, 2020, Ehrlich Company purchased 40,000 shares (10%) of common stock of Portal Corporation as a long-term investment for $950,000. On March 26, 2020, Portal paid dividends of $0.30 per share. On July 19, 2020, Ehrlich sold 10,000 of its shares for $28 per share. On September 29,2020, Portal paid a dividend to shareholders of $0.50 per share. Instructions Prepare the journal entry to record the investment in Portal stock. Record the entry for the receipt of dividends on March 26, 2020 Record the sale of the shares on July 19, 2020 Record the receipt of dividends on September 29,2020 What is the balance of the Stock Investments account on Ehrlich Company's books at the end of the year?.
Hello, Can you help with the question attached, thanks kindly.
On June 15, 2020, Brainiac Company purchased 8 shares of Lovely Company for $6 per share. The investment represented less than 20% of the shares outstanding so it was a passive investment. Brainiac held the investment for the remainder of 2020, and at December 31 the market value was $4 per share. During 2021, Brainiac sold 3 shares of Lovely for $7 each and at the end of 2021, the market value of the remaining 5 shares was $9 each. What was the gain or loss on Brainiac's income statement for 2021? Indicate how much of the gain or loss is realized and how much is unrealized. Select one: a. $9 realized gain and $25 unrealized gain b. $3 realized gain and $15 unrealized gain c. $3 realized gain and $25 unrealized gain d. $9 realized gain and $15 unrealized gain

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