On January 1, 2019 an entity acquired non-trading equity securities irrevocably elected at FVOCI SECURITIES COST FV- 12/31/2019 FV- 12/31/2020 6,000,000 4,000,000 A 5,700,000 B 4,800,000 4,500,000 5,000,000 5,500,000 5,900,000 The entity sold Security A on December 15, 2020 for 7,000,000.

On January 1, 2019 an entity acquired non-trading equity securities irrevocably elected at FVOCI SECURITIES COST FV- 12/31/2019 FV- 12/31/2020 6,000,000 4,000,000 A 5,700,000 B 4,800,000 4,500,000 5,000,000 5,500,000 5,900,000 The entity sold Security A on December 15, 2020 for 7,000,000.

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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Question

What is the net adjustment to retained earnings on the disposal of Security A?

What amount in OCI should be recognized in the statement of changes in equity on December 31,2020?

On January 1, 2019 an entity acquired non-trading equity securities irrevocably elected at FVOCI
FV- 12/31/2020
SECURITIES
COST
FV- 12/31/2019
A
6,000,000
4,000,000
5,000,000
5,700,000
4,800,000
B
4,500,000
5,500,000
5,900,000
The entity sold Security A on December 15, 2020 for 7,000,000.

Definition Definition Remaining net income of the company after the required dividends are paid to shareholders. This surplus money is usually invested back into the business to expand its business operations or launch a new product.

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