Atlas Company purchased the following investments during 2020: Classification Cost Market Value December 31, 2020 Security A Trading 900,000 1,000,000 Security B Trading 1,000,000 1,600,000 On July 31, 2021, the entity sold all of the shares of Security B for P1,100,000. On December 31. 2021, the shares of Security A had a market value of P600,000. No other activity occurred during 2021 in relation to the trading security portfolio. 14. What total loss on the trading securities should be reported in the income statement for 2021? a. 400,000 c. 500,000 b. 900,000 d. 100,000
Atlas Company purchased the following investments during 2020: Classification Cost Market Value December 31, 2020 Security A Trading 900,000 1,000,000 Security B Trading 1,000,000 1,600,000 On July 31, 2021, the entity sold all of the shares of Security B for P1,100,000. On December 31. 2021, the shares of Security A had a market value of P600,000. No other activity occurred during 2021 in relation to the trading security portfolio. 14. What total loss on the trading securities should be reported in the income statement for 2021? a. 400,000 c. 500,000 b. 900,000 d. 100,000
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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Atlas Company purchased the following investments during 2020:
Classification Cost Market Value December 31, 2020
Security A Trading 900,000 1,000,000
Security B Trading 1,000,000 1,600,000
On July 31, 2021, the entity sold all of the shares of Security B for P1,100,000. On December 31. 2021, the shares of Security A had a market value of P600,000. No other activity occurred during 2021 in relation to the trading security portfolio.
14. What total loss on the trading securities should be reported in the income statement for 2021?
a. 400,000 c. 500,000
b. 900,000 d. 100,000
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