The cost and fair value of non-strategic investments of International Journalist Corporation on December 31, 2023, and December 31,2024, are as follows:On December 31, 2023On December 31, 2024Cost$26,00027,750Fair Value$23,25029,850Required:1. Prepare the fair value adjustment at December 31, 2023, and December 31, 2024, based on the information provided.

Fair Value Adjustment CalculationDecember 31, 2023Cost: $26,000Fair Value: $23,250Fair Value…

Answered: The cost and fair value of…

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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Skywalker Limited purchased shares of Jedi Jewelers during 2022 for $124,000. Skywalker elected the fair value option for accounting for this investment. At year end 2022, 2023, and 2024, this investment had a fair value of $120,000, $134,000, and $137,000, respectively. What is the amount of unrealized gain or loss reported on this investment at year-end 2024? Group of answer choices Unrealized Loss of $10,000 Unrealized Gain of $14,000 Unrealized Gain of $17,000 Unrealized Gain of $3000
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Sunland Homes Company is considering the acquisition of Oriole, Inc. early in 2025. To assess the amount, it might be willing to pay. Sunland Homes makes the following computations and assumptions. A B Oriole, Inc. has identifiable assets with a total fair value of $15,030,000 and liabilities of $8,815,000. The assets include office equipment with a fair value approximating book value, buildings with a fair value 30% higher than book value, and land with a fair value 75% higher than book value. The remaining lives of the assets are deemed to be approximately equal to those used by Oridle, Inc. Oriole, Inc's pretax incomes for the years 2022 through 2024 were $1,200,900, $1,500,800, and $955,000, respectively. Sunland Homes believes that an average of these earnings represents a fair estimate of annual earnings for the indefinite future. However, it may need to consider adjustments to the following items included in pretax eamings: Depreciation on buildings (each year) C 962,900…
Interest During Construction Alta Company is constructing a production complex that qualifies for interest capitalization. The following information is available: Capitalization period: January 1, 2019, to June 30, 2020 Expenditures on project: 2019: January 1 May 1 $420,000 381,000 October 1 552,000 2020: March 1 June 30 Amounts borrowed and outstanding: 1,428,000 624,000 $1.6 million borrowed at 12%, specifically for the project $4 million borrowed on July 1, 2018, at 14% $18 million borrowed on January 1, 2017, at 8% Required: Note: Round all final numeric answers to two decimal places. 1. Compute the amount of interest costs capitalized each year. Capitalized interest, 2019 $ 933,000 X Capitalized interest, 2020 $ 2,052,000 X 2. If it is assumed that the production complex has an animated life of years and a residual value of $0, compute the straight-line depreciation in 2020. Alpha-numeric input field 115,825 X $ 3. Since GAAP requires accrual accounting, if a company capitalizes…
ABC Corp, comitted to sell a division on March 22, 2022. It sold the division on June 14, 2024. Income from operating this divisio was $2,408,000, $829,600 and $247,200 in 2022, 2023 and 2024, respectively. On December 31, 2022, the carrying value of the division was $7,080,000 and the fair value was &7,000,000. On December 31, 2023, the fair value of the division was $7,160,000 and the carrying value of the division was $7,080,000. The division was sold for $6,880,000 when the carrying value was $7,080,000 Prepare the discontinued operations section of the income statement for 2022 throuh 2024, assuming ABC Corp's income tax rate is 20%
Required information [The following information applies to the questions displayed below.] In 2022, Alliant Corporation acquired Centerpoint Incorporated for $352 million, of which $62 million was allocated to goodwill. At the end of 2024, management has provided the following information for a required goodwill impairment test: Fair value of Centerpoint Incorporated Book value of Centerpoint's net assets (excluding goodwill) Book value of Centerpoint's net assets (including goodwill) $ 256 million 228 million 290 million 2. Determine the amount of goodwill reported in the year-end 2024 balance sheet. 3. Determine the amount of the impairment loss assuming that the fair value of Centerpoint is $318 million. Note: For all requirements, enter your answer in millions (i.e., 10,000,000 should be entered as 10). 2. Goodwill 3. Impairment loss million million
[The following information applies to the questions displayed below.) Metro Corporation traded Building A for Building B. Metro originally purchased Building A for $50,000, and Building A's adjusted basis was $25,000 at the time of the exchange. What is Metro's realized gain or loss, recognized gain or loss, and adjusted basis in Building B in each of the following alternative scenarios? Note: Loss amounts should be indicated by a minus sign. Input all other amounts as positive values. Leave no answers blank. Enter zero is applicable. d. The fair market value of Building A is $45,000, and Metro trades Building A for Building B valued at $40,000 and $5,000 cash. Building A and Building B are like kind property. Description (1) Amount realized from Building B (2) Amount realized from boot (cash). (3) Total amount realized (4) Adjusted basis (5) Gain realized (6) Gain recognized (7) Deferred gain Adjusted basis in Building Br Amount S $ $ 40,000 5,000 45.000
Which of the following would be considered an investment property under IFRS? Question 6 options: a) A company owns land that it plans to hold for at least 10 years because management feels that the property will increase in value. b) A company is constructing an office tower, which it plans to occupy in the future for the purpose of housing its operations. c) A building that is fully occupied by the company that owns it. d) A company owns a hotel and its surrounding land, and provides housekeeping, recreation, and maintenance services.

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