Pompey Inc. carries the following marketable equity securities on its books at December31, 2019 and 2020. All securities were purchased during 2019.Trading Securities:CostFair Value12/31/1912/31/20400,000400,000500,0001,300,000260,000400,000P CompanyR CompanyT CompanyTotal500,000260,000700,0001,460,000600,0001,260,000Financial asset @ FVOCI:CostFair Value12/31/1912/31/20C Company| CompanyTotal4,100,0001,000,000´ 5,100,0003,600,0001,200,0004,800,0003,600,0001,400,0005,000,000The net amount to be recognized in 2020 comprehensive income is

Comprehensive income includes all unrealised gains or losses on sale of trading securities or any…

Pompey Inc. carries the following marketable equity securities on its books at Decemb- 31, 2019 and 2020. All securities were purchased during 2019. Trading Securities: Cost Fair Value 12/31/19 12/31/20 260,000 400,000 600,000 1,260,000 400,00 P Company R Company T Company 500,000 260,000 700,000 400,00 500,00 Total 1,460,000 1,300,00 Financial asset @ FVOCI: Cost Fair Value 12/31/19 12/31/20 4,100,000 1,000,000 5,100,000 3,600,000 1,200,000 4,800,000 3,600,00 C Company | Company Total 1,400,00 5,000,00 The net amount to be recognized in 2020 comprehensive income is

Pompey Inc. carries the following marketable equity securities on its books at Decemb- 31, 2019 and 2020. All securities were purchased during 2019. Trading Securities: Cost Fair Value 12/31/19 12/31/20 260,000 400,000 600,000 1,260,000 400,00 P Company R Company T Company 500,000 260,000 700,000 400,00 500,00 Total 1,460,000 1,300,00 Financial asset @ FVOCI: Cost Fair Value 12/31/19 12/31/20 4,100,000 1,000,000 5,100,000 3,600,000 1,200,000 4,800,000 3,600,00 C Company | Company Total 1,400,00 5,000,00 The net amount to be recognized in 2020 comprehensive income is

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

Chapter16: Retained Earnings And Earnings Per Share

Section: Chapter Questions

Problem 26E: Tama Companys capital structure consists of common stock and convertible bonds. At the beginning of...

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Trading Securities Pear Investments began operations in 2020 and invests in securities classified as trading securities. During 2020, it entered into the following trading security transactions: Purchased 20,000 shares of ABC common stock at $38 per share Purchased 32,000 shares of XYZ common stock at $17 per share At December 31, 2020, ABC common stock was trading at $39.50 per share and XYZ common stock was trading at $16.50 per share. Required: 1. Prepare the necessary adjusting entry to value the trading securities at fair market value. 2. CONCEPTUAL CONNECTION What is the income statement effect of this adjusting entry?
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Anoka Company reported the following selected items in the shareholders equity section of its balance sheet on December 31, 2019, and 2020: In addition, it listed the following selected pretax items as a December 31, 2019 and 2020: The preferred shares were outstanding during all of 2019 and 2020; annual dividends were declared and paid in each year. During 2019, 2,000 common shares were sold for cash on October 4. During 2020, a 20% stock dividend was declared and issued in early May. At the end of 2019 and 2020, the common stock was selling for 25.75 and 32.20, respectively. The company is subject to a 30% income tax rate. Required: 1. Prepare the comparative 2019 and 2020 income statements (multiple-step), and the related note that would appear in Anokas 2020 annual report. 2. Next Level Compute the price/earnings ratio for 2020. How does this compare to 2019? Why is it different?
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Hyde Corporations capital structure at December 31, 2018, was as follows: On July 2, 2019, Hyde issued a 10% stock dividend on its common stock and paid a cash dividend of 2.00 per share on its preferred stock. Net income for the year ended December 31, 2019, was 780,000. What should be Hydes 2019 basic earnings per share? a. 7.80 b. 7.09 c. 7.68 d. 6.73
Tama Companys capital structure consists of common stock and convertible bonds. At the beginning of 2019, Tama had 15,000 shares of common stock outstanding; an additional 4,500 shares were issued on May 4. The 7% convertible bonds have a face value of 80,000 and were issued in 2016 at par. Each 1,000 bond is convertible into 25 shares of common stock; to date, none of the bonds have been converted. During 2019, the company earned net income of 79,200 and was subject to an income tax rate of 30%. Required: Compute the 2019 diluted earnings per share.