Wickum Corporation reports under IFRS, and recognized a $500,000 other-than-temporary impairment of anHTM debt investment in Right Corporation. Subsequently, the fair value of Wickum’s investment in Rightincreased by $300,000. How would Wickum account for that increase in fair value?

Wickum Corporation reports under IFRS, and recognized a $500,000 other-than-temporary impairment of anHTM debt investment in Right Corporation. Subsequently, the fair value of Wickum’s investment in Rightincreased by $300,000. How would Wickum account for that increase in fair value?

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter11: Invest Or Losses

Section: Chapter Questions

Problem 9DQ

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Wickum Corporation reports under IFRS (according to IAS No. 39), and recognized a $500,000 other-thantemporary impairment of an HTM debt investment in Right Corporation. Subsequently, the fair value of Wickum’s investment in Right increased by $300,000. How would Wickum account for that increase in fair value?
Wickum Corporation reports under IFRS, and recognized a $500,000 impairment of an HTM debt investment in Right Corporation. Subsequently, the credit loss for Wickum’s investment decreased by $300,000. How would Wickum account for that change?
XYZ Co had the following accounts at the time it was acquired by ABC Inc (see image below). ABC paid P1,400,000 for the net assets of XYZ. It was determined that the fair market value of inventories and PPE were P133,000 and P900,000 respectively. There is an assumed contingent liability arising from past events with a fair value amounting to P10,000 and such amount is considered a reliable measurement. Compute for a) Cost of Acquisition and b) goodwill or gain from acquisition
XYZ Co had the following accounts at the time it was acquired by ABC Inc (see image below). ABC paid P1,400,000 for the net assets of XYZ. It was determined that the fair market value of inventories and PPE were P133,000 and P900,000 respectively. There is an assumed contingent liability arising from past events with a fair value amounting to P10,000 and such amount is considered a reliable measurement. Compute for a) Cost of Acquisition and b) goodwill or gain from acquisition (two answers) Cash . Accounts receivable Inventories . Plant, property, and equipment . .. Accounts payable . P. 36.000 457,000 120,000 696,400 350,800 *****
XYZ Co had the following accounts at the time it was acquired by ABC Inc (see image below). ABC paid P1,400,000 for the net assets of XYZ. It was determined that the fair market value of inventories and PPE were P133,000 and P900,000 respectively. There is an assumed contingent liability arising from past events with a fair value amounting to P10,000 and such amount is considered a reliable measurement. RQUIRED: a) Cost of Acquisition b) goodwill or gain from acquisition
XYZ Co had the following accounts at the time it was acquired by ABC Inc (see image below). ABC paid P1,400,000 for the net assets of XYZ. It was determined that the fair market value of inventories and PPE were P133,000 and P900,000 respectively. There is an assumed contingent liability arising from past events with a fair value amounting to P10,000 and such amount is considered a reliable measurement. Compute for: a) Cost of Acquisition b) Good will or Gain from acquisition
On its December 31, 2021, statement of financial position, Apollo Co. reported its investment in equity securities at fair value through other comprehensive income, which had cost P600,000, at fair value of P550,000. At December 31, 2022, the fair value of the securities was P585,000. What should Apollo report on its 2022 income statement as a result of the increase in fair value of the investments in 2022? Unrealized loss of P15,000. O Unrealized gain of P35,000. Realized gain of P35,000. О РО.
Franklin Corp. has a debt investment that it has held forseveral years. When it purchased the debt investment,Franklin classified and accounted for it as available-forsale.Can Franklin use the fair value option for thisinvestment? Explain.
On January 5, 2021, Milk Tea Company purchased equity securities for P2,500,000. The company also paid transaction costs amounting to P43,000 and classified the investments at fair value through other comprehensive income. The fair values of the equity securities were P2,600,000 and P2,400,000 on December 31, 2021 and December 31, 2022, respectively. What amount of unrealized gain or (loss) should be reported in the statement of comprehensive income for the year ended December 31, 2022?
On January 1, 2021, an entity purchased marketable equity securities for P5,000,000. The equity securities did not qualify as a financial asset held for trading, and the entity made an irrevocable election to present unrealized gain and loss in other comprehensive income. The entity also paid P50,000 as commission to the broker. The entry to record this purchase would include a.A debit to commission expense, P50,000 b.A debit to Financial asset - FVOCI, P5,000,000 c.A debit to Financial asset - FVOCI, P4,950,000 d.A debit to Financial asset - FVOCI, P5,050,000
On October 2020, X Corporation purchased a financial instrument that qualifies as a derivative and serves as a hedge for market value risk. At the end of the year the instrument increased in value by 4,000 . How should corporation X present that profit in the financial statements? Half as part of net income and the other half as comprehensive income you shouldn't recognize it within net income as other comprehensive income
On January 1, 2020, the Gim Corporation purchased equity securities for P2,000,000. The company also paid commissions, taxes and other transaction costs amounting to P50,000. Because the securities were not acquired for immediate trading, Gim exercised the option to take the change in fair value through other comprehensive income. The securities had fair values at December 31, 2020 and 2021, respectively: P1,750,000 and P2,100,000. No securities were sold during 2020. What amount of unrealized gain (loss) should be reported in the 2020 statement of financial position?Required to answer. Single choice.