The 2018 annual report of Bristol-Myers Squibb reveals that the company maintains a large investment in available-for-sale securities. Did the company's available-for-sale securities experience a gain or loss in value in 2018 and/or 2017, and if so, in what amount? How did the company account for these gains and/or losses? Were these gains (losses) taxable (tax deductible) in 2018 and/or 2017?

Q: The following information relates to Moran Co. for the year ended December 31, 2020: net income…

A: (a) Determine other comprehensive income: Other comprehensive income = $10.9 million. The other…

Q: What is The Net unrealized Gain (Loss) each year? Is the Net unrealized Gain (Loss) taxable?

A: Formula: Unrealized gain ( Loss ) = Fair value of securities - amortized cost. Deduction of…

Q: Sandhill Company's equity securities portfolio which is appropriately included in current assets is…

A: Since the given securities are trading securities hence any unrealized gain or loss in respect of…

Q: On its December 31, 2024 balance sheet, Calhoun Company appropriately reported a $10,000 debit…

A: The unrealized gain or loss on the investment is determined by comparing the cost of the investment…

Q: Assume a sales price per unit of $25, variable cost per unit $21, and total fixed costs of $161280.…

A: Break even point = Fixed cost / Contribution margin ratio Contribution margin ratio  = (selling…

Q: An entity buys and sells securities expecting to earn profits on short-term differences in price.…

A: 1. Net income after adjustments = P900,000 + [(225,000-195,000)+(162,000-300,000)+(678,000-660,000)]…

Q: On December 31, Lujack Company held the following short-term available-for-sale securities. Lujack…

A: Available-for-sale (AFS) investments are investments wherein the company holds them with the intent…

Q: General Motors invests in securities of other companies. Access GM’s 2019 10-K (which includes…

A: In the fiscal year ending December 31, 2019, General Motors (GM) showcased a robust financial…

Q: (a) Assuming no Fair Value Adjustment account balance at the beginning of the year, prepare the…

A: Required journal entry is: Date Particulars Debit ($)  Credit ($)    Unrealised holding gain or…

Q: Beginning in 2018 the accounting for investments in stock changed. The former methods used were…

A: "Since you have asked multiple questions, the first question was answered for you. If you want the…

Q: Oriole Company has these data at December 31, 2027, the end of its first year of operations. Debt…

A: 1) Adjusting entries are those journal entries which are recorded in the books of accounts at the…

Q: On October 2020, X Corporation purchased a financial instrument that qualifies as a derivative and…

A: Other comprehensive income is the statement which is prepared to record the gain or losses, revenue…

Q: As of 12/31/24, XYZ Inc. had available-for-sale debt investments wi cost of $525,000, and a credit…

A: Unrealized gain or loss on available-for-sale securities is calculated as the difference between the…

Q: On its December 31, 2020, balance sheet, Post Co. reported its investment in financial asset @ fair…

A: Following will be posted in the income statement at year end

Q: Some of Ivanhoe Corporation's investments in debt securities are classified as trading securities…

A: Journal entries are the primary reporting of the business transactions in the books of accounts.…

Q: On January 1, 2020, Maya Company appropriately reported a credit balance of P125,000 (before income…

A: The revalued amount is the fair market value on the revaluation date, less any later cumulative…

Q: Assume these are the only securities Martin owns and that the company accounts for them as trading…

A: Net income is the income which is chargeable to tax for income tax purposes. In the instant case,…

Q: Hampton Company has a debit balance in the Fair Value Adjustment account that is associated with its…

A: The objective of the question is to understand the implications of a debit balance in the Fair Value…

Q: Kitty Company began operations in the current year and acquired short-term debt investments in…

A: Investments in stocks, bonds, or other financial instruments that a business actively purchases and…

Q: Record the year-end entry to adjust the debt investments to fair value.

A: The adjustment in the available for sale securities be it a debt or an equity requires to determine…

Q: 1. The financial statements of Kare-Kare Company for the calendar year ending December 31, 2021 are…

A: In the context of the given question, the events or transactions that have occurred before or after…

Q: ng Securities: ity A ity B tals rities Available-for-Sale: rity C ity D tals ities to Be…

A: Securities held-to-maturity -Securities that businesses buy to hold onto until they mature are…

Q: Required: 1. Prepare the appropriate journal entry for each transaction or event during 2024, as…

A: Journal Entry is the primary step to recording the transaction in the books of accounts.Income…

Q: Debits revenue est revenue on sale of investments on debt securities on projected benefit obligation…

A: Step 1: Introduction to statement of comprehensive incomeThe statement of income is produced at year…

Q: A company purchases debt securities for $100,000 at the beginning of 2022. It classifies as trading…

A: An investment in debt securities may be classified as either trading securities, available for sale…

Q: 12/31/20 Lexus inc recorded an unrealized gain of $5000 related to its trading debt securities…

A: When Lexus had reported an unrealized gain of $5,000 for asset costing $20,000, it had passed the…

Q: Windsor, Inc. has an investment in trading securities of $162000. This investment experienced an…

A:

Q: Which of the following transactions and events would result in a deterioration in Net Tangible Asset…

A: Tangible assets are which can be touch felt and can be seen, Whereas intangible assets we cannot…

Q: Dodd Co.'s debt securities at December 31 included available-for-sale securities with a cost basis…

A: An available for sale security is a debt or equity instrument that is not classified as a trading…

Capital Gain

Any capital asset when sold can give the seller a higher or lower price from its purchase price leading to a capital gain or capital loss. The time period of holding an asset is decided based on if it is a long term or short-term capital gain. On that basis, the rate of taxation is decided if it is 20%, 15% or according to the tax brackets. The rate of taxation differs in the case of equity or debt, whether long or short term. The capital gain can be adjusted from capital loss to arrive at a net capital gain. The amount of gains and the exemption has to be reported in the tax return filed in the financial year in which the asset was transferred. The tax return can be filed quarterly, monthly, semi-annually or annually.