On January 1, 2020, FAMILY Company purchased equity investments held for trading. Market-12/31/2020 4,000,000 3,700,000 5,200,000 Security E Security C Security Q Purchase price 4,000,000 5,000,000 6,000,000 Transaction cost 600,000 500,000 400,000 On May 1, 2021, FAMILY sold Security E for P4,650,000. Commission paid to broker amounted to 50,000.
On January 1, 2020, FAMILY Company purchased equity investments held for trading. Market-12/31/2020 4,000,000 3,700,000 5,200,000 Security E Security C Security Q Purchase price 4,000,000 5,000,000 6,000,000 Transaction cost 600,000 500,000 400,000 On May 1, 2021, FAMILY sold Security E for P4,650,000. Commission paid to broker amounted to 50,000.
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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What amount of unrealized loss should be recognized in the 2020 income statement?
What amount should be reported as realized gain on the sale of trading securities in the 2021 income statement?
Transcribed Image Text:On January 1, 2020, FAMILY Company purchased equity investments held for trading.
Market-12/31/2020
Security E
Security C
Security Q
Purchase price
4,000,000
5,000,000
6,000,000
Transaction cost
600,000
500,000
4,000,000
3,700,000
5,200,000
400,000
On May 1, 2021, FAMILY sold Security E for P4,650,000.
Commission paid to broker amounted to 50,000.
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