SUBJECT: FINANCIAL ACCOUNTING Havens Corporation has purchased a total of 420 sharesof RedTech, Inc. common stock over the years. In 1998,Havens acquired 70 shares at a price of $32 per share.Later, in 2003, they bought 150 shares at $18 per share,and in 2016, they purchased 200 shares at $63 per share.In the current year, 2017, Havens plans to sell 130 sharesat a market price of $78 per share. If HavensCorporation's objective is to minimize gain and assumingthey can adequately identify the shares to be sold, whatis the recognized gain on the sale of these shares?

Explanation of Cost Basis: Cost basis represents the original value of an asset for tax purposes,…

Answered: Havens Corporation 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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Harland Investments has purchased a total of 340 shares of 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, and in 2015, he purchased 180 shares at $55 per share. In the current year, 2016, Harland plans to sell 110 shares at a market price of $65 per share. If Harland’s objective is to minimize gain and assuming he can adequately identify the shares to be sold, what is the recognized gain on the sale of these shares? Step by step answer
What is the recognized gain?
What is the recognized gain on the sale
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?
On January 1, 2015, Port Company acquires 8,000 shares of Solvo Company by issuing 10,000 of its common stock shares with a par value of $10 per share and a fair value of $70 per share. The price paid reflects a control premium. The market value of the shares owned by the NCI is $80 per share. At the time of the purchase, Solvo has the following balance sheet:Appraisals indicate that book values are representative of fair values with the exception of the land and building. The land has a fair value of $180,000, and the building is appraised at $450,000. The building has an estimated remaining life of 20 years. Any remaining excess is goodwill.The following summary of Solvo’s retained earnings applies to 2015 and 2016:Balance, January 1, 2015. . . . . . . . . . . . . . . . . . . $250,000Net income for 2015. . . . . . . . . . . . . . . . . . . . . 60,000Dividends paid in 2015. . . . . . . . . . . . . . . . . . . (10,000)Balance, December 31, 2015 . . . . . . . . . . . . . . . $300,000Net…
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?.
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 show the proper solution in a good accounting form.
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?
Can you please answer the general accounting question?
Blue Spruce Corporation made the following purchases of investments during 2020, the first year in which Blue Spruce invested in equity securities: On January 15, purchased 12,240 shares of Nirmala Corp.'s common shares at 1 $45.60 per share plus commission of $2,694. On April 1, purchased 6,800 shares of Oxana Corp's common shares at $71 per share plus commission of $4,583. On September 10, purchased 9,520 shares of WwTA Corp.'s preferred shares at $36.60 per share plus commission of $3,958. On May 20, 2020, Blue Spruce sold 4,080 of the Nirmala common shares at a market price of $48 per share less brokerage commissions of $3,876. The year-end fair values per share were as follows: Nirmala $41, Oxana $75, and WTA $38. The chief accountant of Blue Spruce tells you that Blue Spruce Corporation holds these investments with the intention of selling them in order to earn short-term profits from appreciation in their prices and accounts for them using the FV-NI model. Assume that Blue…
Panthers Corp. purchased 16,000 shares of Canes Corp. for $10 per share on April 1, 2022. As per IFRS 9, Panthers chose to classify this new investment as FVOCI at the time of the purchase. On November 1, 2022 Canes paid a dividend of $6 per share. At balance sheet date the market price of Canes was $9 per share. On March 1, 2023 Panthers sold all 16,000 shares for $15 per share. 1) Prepare the journal entries required under IFRS as well as those that would be required under GAAP.

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