On January 1, Canyon Corporation's Valuation Allowance for Trading Investments account has a debit balance of $15,000. On December 31, the cost of the trading securities portfolio was $50,000, and the fair value was $63,000. Which of the following would Canyon report on the income statement for the current year? A) An unrealized loss on trading investments, $12,000 B) An unrealized gain on trading investments, $12,000 C) An unrealized gain on trading investments, $3,000 D) An unrealized loss on trading investments, $3,000

On January 1, Canyon Corporation's Valuation Allowance for Trading Investments account has a debit balance of $15,000. On December 31, the cost of the trading securities portfolio was $50,000, and the fair value was $63,000. Which of the following would Canyon report on the income statement for the current year? A) An unrealized loss on trading investments, $12,000 B) An unrealized gain on trading investments, $12,000 C) An unrealized gain on trading investments, $3,000 D) An unrealized loss on trading investments, $3,000

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter13: Investments And Long-term Receivables

Section: Chapter Questions

Problem 10RE: On September 30, Franz Corporation notices a decline in value of its investment in held-to-maturity...

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On September 30, Franz Corporation notices a decline in value of its investment in held-to-maturity bonds. On that date, the carrying value of the bonds is 38,500 and the fair value is 22,980. Franz evaluation of this investment reveals that expected credit losses are 10,000. Prepare the journal entry to record the impairment.
Juroe Company provided the following income statement for last year: Juroes balance sheet as of December 31 last year showed total liabilities of 10,250,000, total equity of 6,150,000, and total assets of 16,400,000. Refer to the information for Juroe Company on the previous page. Also, assume that Juroes total assets at the beginning of last year equaled 17,350,000 and that the tax rate applicable to Juroe is 40%. Required: Note: Round answers to two decimal places. 1. Calculate the average total assets. 2. Calculate the return on assets.
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Monona Company reported net income of 29,975 for 2019. During all of 2019, Monona had 1,000 shares of 10%, 100 par, nonconvertible preferred stock outstanding, on which the years dividends had been paid. At the beginning of 2019, the company had 7,000 shares of common stock outstanding. On April 2, 2019, the company issued another 2,000 shares of common stock so that 9,000 common shares were outstanding at the end of 2019. Common dividends of 17,000 had been paid during 2019. At the end of 2019, the market price per share of common stock was 17.50. Required: 1. Compute Mononas basic earnings per share for 2019. 2. Compute the price/earnings ratio for 2019.
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