On January 1, 2020, Pepper Corp. had cash and common shares of $60,000. At that date, the company had no other asset, liability, or shareholders' equity balances. On January 2, 2020, Pepper paid $40,000 cash for equity securities that it designated as fair value through other comprehensive income (FV-OCI) investments. During the year, Pepper received non-taxable cash dividends of $18,000 and had an unrealized holding gain of $25,000 (net of tax) on these securities. Required Determine the following amounts for 2020: Net income Other comprehensive income Comprehensive income Accumulated other comprehensive income (as at the end of 2020)

On January 1, 2020, Pepper Corp. had cash and common shares of $60,000. At that date, the company had no other asset, liability, or shareholders' equity balances. On January 2, 2020, Pepper paid $40,000 cash for equity securities that it designated as fair value through other comprehensive income (FV-OCI) investments. During the year, Pepper received non-taxable cash dividends of $18,000 and had an unrealized holding gain of $25,000 (net of tax) on these securities. Required Determine the following amounts for 2020: Net income Other comprehensive income Comprehensive income Accumulated other comprehensive income (as at the end of 2020)

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter17: Corporations: Introduction And Operating Rules

Section: Chapter Questions

Problem 48P

See similar textbooks

Similar questions

On January 1, 2020, Concord Corporation had cash and common shares of $80,000. At that date, the company had no other asset, liability, or shareholders’ equity balances. On January 2, 2020, Concord Corporation paid $60,000 cash for equity securities that it designated as fair value through other comprehensive income (FV-OCI) investments. During the year, Concord Corporationreceived non-taxable cash dividends of $26,000 and had an unrealized holding gain of $21,000 (net of tax) on these securities. Determine the following amounts for 2020: (a) Net Income / (Loss) $enter a dollar amount (b) Other Comprehensive Income $enter a dollar amount (c) Comprehensive Income $enter a dollar amount (d) Accumulated Other Comprehensive Income (as at the end of 2020) $enter a dollar amount
On January 1, 2023, Cullumber Corp. had cash and common shares of $80,000. At that date, the company had no other asset, liability, or shareholders' equity balances. On January 2, 2023, Cullumber paid $60,000 cash for equity securities that it designated as FV-OCI investments. During the year, Cullumber received non-taxable cash dividends of $27,000 and had an unrealized holding gain of $25,000 (net of tax) on these securities. Determine the following amounts for 2023: (a) (b) (c) Net Income /(Loss) Other Comprehensive Income Comprehensive Income (d) Accumulated Other Comprehensive Income (as at the end of 2023) $ $ tA LA
On January 1, 2020, Richards Inc. had cash and common stock of $60,000. At that date, the company had no other asset, liability, or equity balances. On January 2, 2020, it purchased for cash $20,000 of debt securities that it classified as available-for-sale. It received interest of $3,000 during the year on these securities. In addition, it has an unrealized holding gain on these securities of $4,000 net of tax. Determine the following amounts for 2020: (a) net income, (b) comprehensive income, (c) other comprehensive income, and (d) accumulated other comprehensive income (end of 2020).
Cheyenne Corporation began operations on January 1, 2020 when $247,000 was invested by shareholders of the company. On March 1, 2020, Cheyenne purchased for cash $111,000 of debt securities that it classified as available-for-sale. During the year, the company received cash interest of $8,800 on these securities. In addition, the company has an unrealized holding loss on these securities of $15,000 net of tax. Determine the following amounts for 2020: (a) net income, (b) comprehensive income, (c) other comprehensive income, and (d) accumulated other comprehensive income (end of 2020). (Enter negative amounts using either a negative sign preceding the number e.g. -15 or parentheses e.g. (15).) (a) Net income $enter a dollar amount (b) Comprehensive income / loss $enter a dollar amount (c) Other comprehensive income $enter a dollar amount (d) Accumulated other comprehensive income / loss $enter a dollar amount
On January 1, 2020, the Pacita Corporation purchased equity securities to be held for trading purposes for P2,000,000. The company also paid commission, taxes and other transaction costs amounting to P50,000. The securities had fair values at December 31, 2020 and 2021, respectively: P1,750,000 and P2,100,000. No securities were sold during 2021. What amount of unrealized gain or loss should be reported in the 2021 profit or loss section of the statement of comprehensive income? P200,000 loss P250,000 loss P350,000 gain P100,000 gain а. b. с. d.
On March 31, 2021, Chow Brothers, Inc., bought 8% of KT Manufacturing’s capital stock for $51.5 million. KT’s net income for the year ended December 31, 2021, was $80.5 million. The fair value of the shares held by Chow was $36.0 million at December 31, 2021. KT did not declare or pay a dividend during 2021. Required:1. Prepare all appropriate journal entries related to the investment during 2021.2. Assume that Chow sold the stock on January 20, 2022, for $30.5 million. Prepare the journal entries to record the sale.
On January 1, 2022, Old Corp. paid P500,000 for 20,000 shares of Hannah Corp's ordinary shares and classified these as HFT securities. Old Co. does not have the ability to exercise significant influence over Hannah Corp. Hannah Corp, declared and paid dividend of PO.50 a share to its stockholders during 2022. Hannah reported a Net Income of P260,000 for the year ended 12.31.2022. The fair value of Hannah share on 12.31.2022 is P27/share. What is the net asset amount (includes investment and related market adjustments) attributable to the investment in Hannah Corp. that will be included on Old Corp.'s statement of financial position as at 12.31.2022? ents Select the correct response: es P 579,000 rs P 569,000 P 540,000 P 530,000 ses Continue > 3
On March 31, 2021, Chow Brothers, Inc., bought 10% of KT Manufacturing’s capital stock for $50 million. KT’s net income for the year ended December 31, 2021, was $80 million. The fair value of the shares held by Chow was $35 million at December 31, 2021. KT did not declare or pay a dividend during 2021.Required:1. Prepare all appropriate journal entries related to the investment during 2021.2. Assume that Chow sold the stock on January 20, 2022, for $30 million. Prepare the journal entry Chow would use to record the sale.
On January 1, 2021, the Oliswel Corporation purchased equity securities to be held for trading purposes for P2,000,000. The company also paid commission, taxes and other transaction costs amounting to P50,000. The securities had fair values at December 31, 2021 and 2022, respectively: P1,750,000 and P2,100,000. No securities were sold during 2022. What amount of unrealized gain or loss should be reported in the 2022 profit or loss section of the statement of comprehensive income? (A) P100,000 gain B P350,000 gain C) P200,000 loss (D P250,000 loss
On January 1, 2024, Headlands Ltd., a private company reporting under ASPE, purchased 25% of the common shares of Blue Corporation for $203,000. Blue reported profit of $99,000 for 2024 and paid dividends of $13,900 on December 31, 2024. Headlands's year end is December 31. Assuming that there is not a quoted market price for Blue's shares, and that Headlands elects to report investments with significant influence using the cost method, prepare the required journal entries. (Record entries in the order displayed in the problem statement. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.) Date Account Titles く Debit Credit
On January 1, 2021, Fisher Corporation paid $2,877,000 for 35 percent of the outstanding voting stock of Steel, Inc., and appropriately applied the equity method for its investment. Any excess of cost over Steel's book value was attributed to goodwill. During 2021, Steel reports $808,000 in net income and a $997,000 other comprehensive income loss. Steel also declares and pays $21,000 in dividends. a. What amount should Fisher report as its Investment in Steel on its December 31, 2021, balance sheet? b. What amount should Fisher report as Equity in Earnings of Steel on its 2021 income statement? Answer is complete but not entirely correct. a. Investment b. Equity in earnings $ 2,809,500 282,800
On January 1, 2020, the Stew Corporation purchased equity securities to be held for trading purposes for $2,000,000. The company also paid commissions, taxes and other transaction costs amounting to $50,000. The securities had fair values at December 31, 2020 and 2021, respectively: $1,750,000 and $2,100,000. No securities were sold during 2020. What amount of unrealized gain (loss) should be reported in the 2020 profit or loss section of the statement of comprehensive income?