Advanced Accounting
14th Edition
ISBN: 9781260247824
Author: Joe Ben Hoyle, Thomas F. Schaefer, Timothy S. Doupnik
Publisher: RENT MCG
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Chapter 3, Problem 7Q
Benns adopts the equity method for its 100 percent investment in Waters. At the end of six years, Benns reports an investment in Waters of $920,000. What figures constitute this balance?
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On July 1, Year 1, XYZ Corporation purchased as a long-term investment a $2 million face amountABC Co. 6% bond for $2,025,000 plus accrued interest to yield 5.75%. On December 31, Year 1,the bonds had a fair value of $1,850,000. What amount of income should XYZ report on its incomestatement for the year ended December 31, Year 1, related to this bond investment if it is classifiedas a held-to-maturity security?a. $120,000b. $116,438c. $121,500d. $115,000
Hello,
Can you assist with questions attached, thanks much.
Bramble Limited, a public company that follows IFRS and has a calendar year end, made the following purchases of investments in
2023. Bramble intends to sell these investments to earn short-term profits from appreciation in their prices and accounts for the
investments using the FV-NI model. This is the first year in which Bramble invested in equity securities:
1.
2.
On March 20, purchased 4,500 shares of Wu Inc. common shares at $27 per share plus commission of $480.
On August 15, purchased 3,200 shares of Xi Inc. common shares at $23 per share plus commission of $420.
On June 30, Bramble sold 2,700 shares of Wu Inc. at $29 less commission of $600.
The December 31, 2023 market value of the Wu shares was $30 and of the Xi shares was $22.
(f)
(c)
Your answer is correct.
Prepare the adjusting entry needed at December 31, 2023. (Credit account titles are automatically indented when the
amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account…
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