If you give me wrong answer I will give you unhelpful rate on these financial accounting question Hawk Corporation purchased 10,000 shares ofDiamond Corporation stock in 2013 for $60 pershare and classified the investment as securitiesavailable for sale. Diamond's market value was$74 per share on December 31, 2014 and $100 onDecember 31, 2015. During 2016, Hawk sold allof its Diamond stock at $145 per share. In its2016 income statement, Hawk would report:a. A gain of $850,000b. A gain of $450,000c. A loss of $400,000d. A gain of $1,250,000

Step 1: Key InformationPurchase Details (2013):Shares purchased = 10,000Purchase price = $60 per…

Answered: Hawk Corporation purchased 10,000…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter3: Evaluation Of Financial Performance

Section: Chapter Questions

Problem 18P

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Hatton Inc. has equity investments at fair value through profit or loss purchased during 20x4. At the end of 2014, the securities had total market value of P 525,000. As of December 31,20x5, the records show cost and market values as follows: Investment Cost Market value 1 P 100,000 P 90,000 2 190,000 210,000 3 250,000 235,000 The gain or loss that would be reported in profit or loss as a result of the valuation of the securities at the end of 20x5 is____________.
(b) During the year 2017, Nestle Corp. sold 2,000 shares of Polland Co. for P114,600 and purchased 2,000 more shares of Lj Inc. and 1,000 shares of Dwarfy Company. On December 31, 2017, Nestle's equity securities portfolio consisted of the following: Investment Quantity Cost Fair value Lj, Inc. 1,000 shares P45,000 P60,000 Lj, Inc. 2,000 shares 99,000 120,000 Dwarfy Company 1,000 shares 48,000 36,000 Alabang Corp. 2,000 shares 216,000 66,000 Totals P408,000 P282,000 7. What amount of unrealized gain or loss should be reported in the income statement for the year ended December 31, 2017? a. P126,000 unrealized gain b. P126,000 unrealized loss P108,000 unrealized gain d. P108,000 unrealized loss C.
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NESTLE Inc., invested its excess cash in equity securities during 2016. The business model for these investments is to profit from trading on price changes. (a) As of December 31, 2016, the equity investment portfolio consisted of the following: Investment Lj, Inc. Polland Co. Alabang Corp. Total Quantity 1,000 shares 2,000 shares 2,000 shares Cost P45,000 120,000 216,000 P381,000 Fair Value P63,000 126,000 180,000 P369,000
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Ziegler Corporation purchased 25,000 ordinary shares of Sherman Corporation for P40 per share on January 2, 2015. Sherman Corporation had 100,000 ordinary shares outstanding during 2016, paid cash dividends of P60,000 during 2016, and reported net income of P200,000 for 2016. Ziegler Corporation should report revenue from investment for 2016 in the amount of P15,000 P35,000 P50,000 P55,000

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