What is the total amount that should be reported in profit or loss relating to the securities during 2020?Single choice.P 640,000P 150,000P 190,000P 340,000How much is the gain or loss to be recognize on the sale of 50% of DEF shares?P 20,000 gain0P 10,000 lossP 190,000 gain ABC Company acquired 60,000 shares of DEF Incorporated's 200,000 ordinary shares on January 2, 2019 for P 4,000,000when the net assets of DEF Incorporated was P 12,000,000. The excess of acquisition cost over the book value of recordedassets is attributable to goodwill. This acquisition gave ABC Company significant influence over DEF Incorporated. DEFIncorporated earned P 2,000,000 net income and paid dividends of P 600,000 in 2019.On January 1, 2020, ABC Company sold 50% of its investment at P 80 per share and subsequently lost significant influenceover DEF and so classified the remaining shares as equity investments at fair value through other comprehensiveincome.DEF Incorporated earned P 3,000,000 net income in 2020. DEF Incorporated also paid dividends of P 1,000,000 in2020. Market value of DEF Incorporated's ordinary shares is P 90 on December 31, 2020.

If the entity sold its investment in the associate's entity and lost significant influence over the…

What is the total amount that should be reported in profit or loss relating to the securities during 2020?Single choice. P 640,000 P 150,000 P 190,000 P 340,000 How much is the gain or loss to be recognize on the sale of 50% of DEF shares? P 20,000 gain 0 P 10,000 loss P 190,000 gain

What is the total amount that should be reported in profit or loss relating to the securities during 2020?Single choice. P 640,000 P 150,000 P 190,000 P 340,000 How much is the gain or loss to be recognize on the sale of 50% of DEF shares? P 20,000 gain 0 P 10,000 loss P 190,000 gain

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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The following data pertains to Traverse Co.'s investments in marketable equity securities: Select one: Oa. $55,000 gain O b. $55,000 loss c. $50,000 loss Od $50,000 gain Oe $0 Cost $150,000 Clear my choice Market value 12/31/24 $155,000 12/31/25 What amount should Traverse Co. report as unrealized holding gain/loss to be included in 2025 Comprehensive Income? $100,000
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On December 21, 2020, Grouper Company provided you with the following information regarding its equity investments. December 31, 2020 Investments (Trading) Cost Fair Value Unrealized Gain (Loss) Clemson Corp. stock $21,600 $20,700 $(900 ) Colorado Co. stock 10,700 9,600 (1,100 ) Buffaloes Co. stock 21,600 22,200 600 Total of portfolio $53,900 $52,500 (1,400 ) Previous fair value adjustment balance 0 Fair value adjustment—Cr. $(1,400 ) During 2021, Colorado Co. stock was sold for $10,140. The fair value of the stock on December 31, 2021, was Clemson Corp. stock—$20,790; Buffaloes Co. stock—$22,110. None of the equity investments result in significant influence. (a) Prepare the adjusting journal entry needed on December 31, 2020. (b) Prepare the journal entry to record the sale of the Colorado Co. stock during 2021. (c) Prepare the adjusting journal entry needed on December 31,…
Calculate the Capital Gain/Loss on 100 shares of the stock Price on September 13th: 211.35 Price on November 24th:207.52 Use the Price on Sep 13th as the purchase price and the Price on November 24th as the sale price. Capital Gain: _______________________________ Percent Return: ___________________________
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