- / 1 Question 5 of 8 View Policies Current Attempt in Progress Deere and Bros. is a broker that brings new issues of small firms to the public market. Its most recent deal for Sandhill, Inc., had the following characteristics: Number of shares: 1,400,000 Proceeds to Sandhill: $13,800,000 Price to public: $20 per share The legal fees were $152,000, printing costs were $55,500, and all the other expenses were $72,000. What is the profit or loss for Deere and Bros.? Profit / (Loss) %24 eTextbook and Media Attempts: 0 of 3 used Submit Answer Save for Later

- / 1 Question 5 of 8 View Policies Current Attempt in Progress Deere and Bros. is a broker that brings new issues of small firms to the public market. Its most recent deal for Sandhill, Inc., had the following characteristics: Number of shares: 1,400,000 Proceeds to Sandhill: $13,800,000 Price to public: $20 per share The legal fees were $152,000, printing costs were $55,500, and all the other expenses were $72,000. What is the profit or loss for Deere and Bros.? Profit / (Loss) %24 eTextbook and Media Attempts: 0 of 3 used Submit Answer Save for Later

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter3: The Financial Environment: Markets, Institutions And Investment Banking

Section: Chapter Questions

Problem 20PROB

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On January 1, 20x1, ABC Co. purchased 1,000 shares of XYZ, Inc. for ₱250,000. Commission paid to brokeramounted to ₱10,000. The equity securities were designated by management to be measured at fair valuethrough profit or loss. On December 31, 20x1, the shares are quoted at ₱200 per share. It was estimated thatthe transaction cost of ₱20 per share will be incurred if the shares were sold on that date. 1. How much is the unrealized gain (loss) on change in fair value recognized in the 20x1 profit or loss?2. On January 3, 20x2, all the shares were sold at ₱300 per share. Commission paid for the sale amountedto ₱60,000. How much is the realized gain (loss) from the sale?3. If ABC Co. uses an allowance account to account for changes in fair values, how much is the balance ofthis account on December 31, 20x1?
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