During 2019 Lovely Company purchased trading securities with the following cost and market value on December 31,2019 Security Cost Market value A 1,000 shares 200,000 300,000 B 10,000 shares 1,700,000 1,600,000 C 20,000 shares 3,100,000 2,900,000 Total 5,000,000 4,800,000 The entity sold 10,000 shares of security B on January 15,2020 for P150 per share What amount of unrealized gain or loss should be reported in the income statement for 2019? A. 200,000 loss B. 200,000 gain C. 300,000 loss D. 300,000 gain 2. What amount should be reported as loss on sale of trading investment in 2020? A. 200,000 gain B. 200,000 loss C. 100,000 gain D. 100,000 loss
During 2019 Lovely Company purchased trading securities with the following cost and market value on December 31,2019 Security Cost Market value A 1,000 shares 200,000 300,000 B 10,000 shares 1,700,000 1,600,000 C 20,000 shares 3,100,000 2,900,000 Total 5,000,000 4,800,000 The entity sold 10,000 shares of security B on January 15,2020 for P150 per share What amount of unrealized gain or loss should be reported in the income statement for 2019? A. 200,000 loss B. 200,000 gain C. 300,000 loss D. 300,000 gain 2. What amount should be reported as loss on sale of trading investment in 2020? A. 200,000 gain B. 200,000 loss C. 100,000 gain D. 100,000 loss
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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Question
During 2019 Lovely Company purchased trading securities with the following cost and market value on December 31,2019
|
Security |
Cost |
Market value |
|
A 1,000 shares |
200,000 |
300,000 |
|
B 10,000 shares |
1,700,000 |
1,600,000 |
|
C 20,000 shares |
3,100,000 |
2,900,000 |
|
|
|
|
|
Total |
5,000,000 |
4,800,000 |
The entity sold 10,000 shares of security B on January 15,2020 for P150 per share
- What amount of unrealized gain or loss should be reported in the income statement for 2019?
A. 200,000 loss
B. 200,000 gain
C. 300,000 loss
D. 300,000 gain
2. What amount should be reported as loss on sale of trading investment in 2020?
A. 200,000 gain
B. 200,000 loss
C. 100,000 gain
D. 100,000 loss
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