In 2019, Josiah Company purchased nontrading equity in investments which are irrevocably designated at FVOCI: Purchased Price Transaction Cost Market Value on Dec. 31, 2019 security a 1,500,000 120,000 1,800,000 security b 2,200,000 190,000 3,000,000 security c 3,500,000 250,000 4,000,000 On March 15, 2020, the entity sold Security A for 2,500,000. What amount of gain on sale should be received in the income statement for 2020?
In 2019, Josiah Company purchased nontrading equity in investments which are irrevocably designated at FVOCI: Purchased Price Transaction Cost Market Value on Dec. 31, 2019 security a 1,500,000 120,000 1,800,000 security b 2,200,000 190,000 3,000,000 security c 3,500,000 250,000 4,000,000 On March 15, 2020, the entity sold Security A for 2,500,000. What amount of gain on sale should be received in the income statement for 2020?
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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In 2019, Josiah Company purchased nontrading equity in investments which are irrevocably designated at FVOCI:
| Purchased Price | Transaction Cost | Market Value on Dec. 31, 2019 | |
| security a | 1,500,000 | 120,000 | 1,800,000 |
| security b | 2,200,000 | 190,000 | 3,000,000 |
| security c | 3,500,000 | 250,000 | 4,000,000 |
On March 15, 2020, the entity sold Security A for 2,500,000.
What amount of gain on sale should be received in the income statement for 2020?
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