How much unrealized holding gain should Lover report in profit or loss for the year 2022?

Q: On January 1, 2024, Cat Company purchased the following investments: 1) 20,000 shares (representing…

A: Realized Gain or loss refers to the actual amount of gain or loss that arises from the purchase or…

Q: Portsmouth Company makes upholstered furniture. Its only variable cost is direct materials. The…

A: It is necessary to do an analysis of the contribution margin per hour for the couches in order to…

Q: On December 31, 2019, Akron, Inc., purchased 5 percent of Zip Company's common shares on the open…

A: The accounting method of amortisation is used to distribute the cost of using a long-term asset…

Q: On July 1, 2021, Tremen Corporation acquired 40% of the shares of Delany Company. Tremen paid…

A: The share and security acquired by the business entity are classified as assets. The ending balance…

Q: On November 1, 2020, Aggie Supplies, Inc. purchased 2,000 shares of Reveille Couture, Inc. for…

A: Calculate unrealized gain or loss on investment as on December 31, 2020, as follows: The unrealized…

Q: At the beginning of 2020, Luz Inc. purchased 100,000 shares of Luccent Inc.'s ordinary shares at P40…

A: Shares which are treated as FVOCI i.e. fair value through other comprehensive income, are recorded…

Q: On January 1, 2020, Stellar Co. purchased 23,000 shares (a 10% interest) in Elton John Corp. for…

A: Inter group company accounting deals with accounting of related entities such as subsidiaries, etc.

Q: On July 15, 2021, Max Co. acquired 25,000 shares of Chicken Co. for P250,000 which includes P1 cash…

A: The acronym "FVPL" stands for Fair Value Through Profit or Loss, these types of securities are not…

Q: Zwick Company bought 12,000 ordinary shares of Handy Corporation in January 2019. In December, Hart…

A: Dividend is the sum of money which is regularly paid by the company after a specific period of time…

Q: Rome Inc. acquired 50,000 ordinary shares of Egypt Company at P120 per share. On February 14, 2020,…

A: Shareholder means the owner of the company who is holding share in its name. Right share means where…

Q: Clayton Co. owned 30,000 ordinary shares of Dayton Corporation purchased in 2018 for P540,000. On…

A: Lets understand the basics. A property dividend is a type of dividend that replaces cash or stock…

Q: During the year 2021, David Company purchased 1,000 shares of Goliath Company ordinary shares at…

A: The calculation of holding gain that should David report in equity on December 31 is shown hereunder…

Q: On January 1, 2019, Familia purchased 1,600 ordinary shares of another entity for P2,000,000.…

A: Realised gains or losses are those gains and losses which are actually realised on shares.…

Q: How much was the gain or loss on sale of investment on January 1, 2020? a. P1,575 loss b. P1,575…

A: Company can control another company by having the control which is significant to control and…

Q: how much should Hanz carry its investment in Eve?

A: According to IAS -28 Equity method is used for accounting of investment in subsidiaries and Joint…

Q: On August 15, 2019, Orion Co. purchased 100,000 ordinary shares of Hercules Co. at P25 per share.…

A: Financial assets are purchased in order to increase the value of the excess fund available with the…

Q: During the year 2021, David Company purchased 1,000 shares of Goliath Company ordinary shares at…

A: Value of investment on 31 dec 2022  = (1,000-400)x200 = P120,000 Value of investment on 31 dec 2021…

Q: n January 2, 2020, Gamu Company purchased as a long term investment 10,000 ordinary shares of llagan…

A: Solution: Cost of investment = 10000*P70 = P700,000 Sale value of investment = 10000*P100 =…

Q: On 1 October 2018, KING acquired 30,000 of VAM's 100,000 shares in exchange for 75,000 of its own…

A: Associate Company is the corporation in which another company has made substantial proportion of…

Q: On January 1, 2024, Cat Company purchased the following investments: 1) 20,000 shares (representing…

A: Introduction: If an investor company makes an investment between 20 to 50% in the investee company…

Q: Sunland Company owns 29000 of the 50000 outstanding shares of Taylor, Inc. common stock. During…

A: Investment revenue is based on the percentage of ownership and the total revenue of the company.…

Q: Company acquires 35% of the 100,000 outstanding shares of Happy Company for P1,200,000.  Happy…

A: when company acquire  certain percentage of share in another company the company share the profit…

Q: On March 31, 2024, Chow Brothers, Incorporated, bought 6% of KT Manufacturing's capital stock for…

A: The objective of the question is to prepare the journal entries for the investment made by Chow…

Q: MANGO Company acquired 4,000 shares of KIWI Corporation ordinary shares on April 2, 2020 at a cost…

A: The trading investment is recognized at FVTPL and any changes in their fair value are recognized in…

Q: On January 1st 2020, the Tesla Company purchased 400 of the 1000 shares of the Spaceship Enterprise…

A: Journal Entry The purpose of preparing the journal entry to enter the required transaction which are…

Q: On March 31, 2021, Chow Brothers, Inc., bought 8% of KT Manufacturing’s capital stock for $51.5…

A: Investment means to put the money in some kind of asset to earn the returns at a future date.

Q: On December 31, 2019, Akron, Inc., purchased 5 percent of Zip Company's common shares on the oper…

A: Investment in Associates and Joint venture and Subsidiary Equity Accounting method - This method is…

Q: During the year 2021, Pal Company purchased 1,000 shares of Pak Company ordinary shares at P150 per…

A: As per Accounting provisions, A held for trading share is purchased with the intention of short…

Q: Sheridan Corporation purchased 43020 shares of common stock of the Splish Corporation for $50 per…

A: The possibility for financial gains is one of the main justifications for investing in another…

Q: During the year 2021,David Company purchased 1,000 shares of Goliath Company ordinary shares at P150…

A: The shares designated to be valued at fair value through other comprehensive income are to be…

Q: On December 31, 2019, Kier Corporation purchased 30,000 shares of Lord Company's shares at P100…

A: When the shareholder of an entity is given an invitation to purchase more or additional shares of…

Q: purchased 2,000 shares of Potter Wholesale for $35 per share. Based on the percentage of outstanding…

A: The realised gain or loss is the difference between the Fair Value of Stock and Sale Value of Stock…

Q: Superman has a 70% interest in the outstanding shares of Batman. On January 1, 2019, Batman sold to…

A: Working note: Computation of additional depreciation/Savings in depreciation: Computation of…

Q: On Jan. 1, 2023 Apex Company purchases 30,000 shares of the common stock of Cary Industries for…

A: Under equity method of investment, investor company records investment at cost and then the…

Q: On July 1, 2021, Bird Inc, a private enterprise, acquired 1,250 shares of Duckltd. tot 375, 000.…

A: Introduction: Financial transactions are tracked using journal entries. You enter transaction…