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

● Assume Sunset Company purchased this entire bond issue sold y Omar, i.e., 7% of $1,000,000 bonds, at $913,540 on January 1,2024. Market yield was 8% and interest is paid semiannually on June 30 and December 31. Sunset is holding the bond investment as trading securities. The fair value of the bonds on December 31, 2024 is $920,000. 1. At what amount will Sunset report this investment in the December 31, 2024 balance sheet? 2. What is the amount related to the bond investment that Sunset will report in its income statement for the year ended December 31, 2024? (Ignore income taxes.) 3. What is the amount related to the bond investment that Sunset will report in its statement of cash flows for the year ended December 31, 2024? Be sure to list the category of activity in which the cash flow is in. activities activities

company's accounting year ends December 31. Date of Acquisition Cost 9/20/23 $38,000 10/2/23 14,000 Investment Colt Company stock Dana Company stock What amount is reported for gain or loss on these securities in 2023 income? Select one: O a. $800 loss O Fair Value 12/31/23 Date Sold Selling Price $37,000 2/10/24 $42,000 14,200 1/17/24 13,000 b. $1,000 loss c. No gain or loss d. $3,000 gain ہے

Monkey Mortgage Inc. engaged in the following non-strategic investment transactions during 2020 2020 Jan. 1 Purchased for $409,686 a 7.5%, $403,000 Jaguar Corp. bond that matures in five years when the market interest rate was 7.1%. Interest is paid semiannually beginning June 30, 2017. Monkey Mortgage Inc. plans to hold this investment until maturity. Mar. 1 Bought 6,300 shares of Mule Corp., paying $32.80 per share. May 7 Received dividends of $1.20 per share on the Mule Corp. shares. June 1 Paid $319,000 for 21,150 shares of Zebra common shares. June 30 Received interest on the Jaguar bond. Aug. 1 Sold the Mule Corp. shares for $33.05 per share: Dec. 31 Received interest on the Jaguar bond. Dec. 31 The fair value of the Zebra shares on this date was $15.00 per share. Assume the fair value of the bonds equalled the carrying value. 2021 Jan. 14 Sold the Zebra shares for $14.80. Required: 1. Prepare an amortization schedule for the Jagd showing only 2020 and 2021. (Enter all the…

On January 1, 2026, Baker Company purchased, as an investment, 5% bonds, having a maturity value of $150,000, for $138,400. The bonds provide the bondholders with a 7% yield. They are dated January 1, 2026, and mature January 1, 2036, with interest receivable June 30 and December 31 of each year. The securities are classified as available-for-sale. January 1, 2026 June 30, 2026 December 31, 2026 June 30, 2027 December 31, 2027 June 30, 2028 December 31, 2028 Schedule of Interest Revenue and Bond Amortization Amortization Cash Received (2.5%) Interest Revenue (3.5%) 3,750 3,750 3,750 3,750 3,750 3,750 4,844 4,882 4,922 4,963 5,005 5,049 The fair value of the bonds at December 31 of each year-end is as follows. 2026 145,000 2027 148,000 2028 152,000 1,094 1,132 1,172 1,213 1,255 1,299 Carrying Value 138,400 139,494 140,626 141,798 143,011 144,266 145,565 a) Prepare the journal entry at the date of the investment purchase. b) Prepare the journal entries to record the interest received on…

Orange LTD has the following investments at December 31, 2020; Fair value Historical cost Sept 30, 2019 $15,000 Fair value Sept 30, 2020 $25,000 Fair value Dec 31, 2020 $30,000 Shares of DEF Bonds of Brooke purchased at par value) Shares of CooksTown Shares of Tulip $25,000 10,000 12,000 18,000 12,000 18,000 16,500 11,000 16,000 19,500 12,500 16,000 20,500 Orange, whose year-end is Sept. 30, purchased the share of Tulip on January 1, 2019, If Orange irrevocably elected to classify its investment in Tulip at fair value through OCL what amount will be reported in other comprehensive income at September 30, 2020? $1,500 gain O $2,500 gain. et O $19,500 O $3,000 gain.

Larkspur Company has the following securities in its investment portfolio on December 31, 2020 (all securities were purchased in 2020): (1) 2,800 shares of Anderson Co. common stock which cost $50,400, (2) 10,800 shares of Munter Ltd. common stock which cost $604,800, and (3) 6,300 shares of King Company preferred stock which cost $270,900. The Fair Value Adjustment account shows a credit of $10,400 at the end of 2020. In 2021, Larkspur completed the following securities transactions. 1. On January 15, sold 2,800 shares of Anderson's common stock at $20 per share less fees of $2,160. 2. On April 17, purchased 900 shares of Castle's common stock at $33 per share plus fees of $2,030. On December 31, 2021, the market prices per share of these securities were Munter $65, King $40, and Castle $25. In addition, the accounting supervisor of Larkspur told you that, even though all these securities have readily determinable fair values, Larkspur will not actively trade these securities because…

Ace Company purchased 10,000 bonds issued by Jack Company in 2018 for $63 per bond and classified the investment as securities available-for-sale. The value of the Jack investment was $81 per bond on December 31, 2019, and $110 per bond on December 31, 2020. During 2021, Ace sold all of its Jack investment at $145 per bond. In its 2021 income statement, Ace would report: Multiple Choice A gain of $350,000. A gain of $470,000. A gain of $1,290,000. A gain of $820,000.

Problem 15-11 (AICPA Adapted) During 2021, Latvia Company purchased trading securities with the following cost and market value on December 31, 2021: Security Cost Market value A 1,000 shares B - 10,000 shares C- 20,000 shares 200,000 1,700,000 3,100,000 300,000 1,600,000 2,900,000 5,000,000 4,800,000 The entity sold 10,000 shares of Security B on January 15, 2022 for P150 per share. What amount should be reported as loss on sale of trading investment in 2022? a. 200,000 gain b. 200,000 Ioss c. 100,000 gain d, 100,000 loss