Gain or Loss on Sale of FVPL 13) On January 1, 2020, Erika Company purchased equity investments held for trading. Purchase Price Transaction Cost Market-12/31/20 Security A Security B Security C 100,000 200,000 300,000 1,200,C 1,500,C 3,100,0 1,000,000 2,000,000 3,000,000 On July 1, 2021, the entity sold Security A for P1,900,000. What amount should be reported as gain on sale for trading securities in the 2021 Income Statement? CA 2020 SEC. A SP GAIN ON SALE 1,200,000 1,900,000 700,000
Gain or Loss on Sale of FVPL 13) On January 1, 2020, Erika Company purchased equity investments held for trading. Purchase Price Transaction Cost Market-12/31/20 Security A Security B Security C 100,000 200,000 300,000 1,200,C 1,500,C 3,100,0 1,000,000 2,000,000 3,000,000 On July 1, 2021, the entity sold Security A for P1,900,000. What amount should be reported as gain on sale for trading securities in the 2021 Income Statement? CA 2020 SEC. A SP GAIN ON SALE 1,200,000 1,900,000 700,000
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...
Related questions
Question
Topic: Gain or Loss on Sale of FVPL
Question: Why Transaction was not deducted from the selling price when getting the Gain on Sale?
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Financial Accounting
Accounting
ISBN:
9781305088436
Author:
Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:
Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Financial Accounting
Accounting
ISBN:
9781305088436
Author:
Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:
Cengage Learning
Auditing: A Risk Based-Approach to Conducting a Q…
Accounting
ISBN:
9781305080577
Author:
Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:
South-Western College Pub
Auditing: A Risk Based-Approach (MindTap Course L…
Accounting
ISBN:
9781337619455
Author:
Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:
Cengage Learning