At December 31, 2022, ABC Corp. had the following equity securities that were purchased during 2022, its first year of operation: Trading Securities: Security A B Totals FAFV Thru OCI: Security Y Z Totals Cost P 90,000 15.000 P105.000 P 70,000 85.000 P155.000 Fair Value P 60,000 20.000 P 80.000 P 80,000 55.000 P135.000 Unrealized Gain (Loss) P(30,000) 5,000 P(25.000) P 10,000 (30,000) P(20.000) All market declines are considered temporary. How much of the fair value adjustments at December 31, 2022 should be charged against income? equity? Present your solution.
At December 31, 2022, ABC Corp. had the following equity securities that were purchased during 2022, its first year of operation: Trading Securities: Security A B Totals FAFV Thru OCI: Security Y Z Totals Cost P 90,000 15.000 P105.000 P 70,000 85.000 P155.000 Fair Value P 60,000 20.000 P 80.000 P 80,000 55.000 P135.000 Unrealized Gain (Loss) P(30,000) 5,000 P(25.000) P 10,000 (30,000) P(20.000) All market declines are considered temporary. How much of the fair value adjustments at December 31, 2022 should be charged against income? equity? Present your solution.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter13: Investments And Long-term Receivables
Section: Chapter Questions
Problem 2MC: During 2021, Anthony Company purchased debt securities as a long-term investment and classified them...
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