Presented below is information related to the purchases of common stock by Thomlin Company during 2020. Cost (at purchase date) Fair Value O Investment in Azul Company stock (at December 31) $200,000 $221,000 D Investment in Justin Corporation stock 271,000 285,000 Investment in Tiger Inc. stock 185,000 260,000 Soid Total $656,000 $766,000 In addition, assume that the investment in the Tiger Inc. stock was sold during 2021 for $278.000. At December 31, 2021, the following information relates to its two remaining investments of common stock. Cost Fair Value (at purchase date) (at December 31) Investment in Azul Company stock $200,000 $195.000 Investment in Justin Corporation stock 271,000 290,000 Total $471,000 485 471 $485,000 Net income before any security gains and losses for 2021 was $1.200,000. (a) Compute the amount of net income or net loss that Thomlin should report for 2021, taking into consideration Thomlin's security transactions for 2021. Net income or net loss that Thomlin should report for 2021 (b) Prepare the journal entry to record unrealized gain or loss related to the investment in Azul Company
Presented below is information related to the purchases of common stock by Thomlin Company during 2020. Cost (at purchase date) Fair Value O Investment in Azul Company stock (at December 31) $200,000 $221,000 D Investment in Justin Corporation stock 271,000 285,000 Investment in Tiger Inc. stock 185,000 260,000 Soid Total $656,000 $766,000 In addition, assume that the investment in the Tiger Inc. stock was sold during 2021 for $278.000. At December 31, 2021, the following information relates to its two remaining investments of common stock. Cost Fair Value (at purchase date) (at December 31) Investment in Azul Company stock $200,000 $195.000 Investment in Justin Corporation stock 271,000 290,000 Total $471,000 485 471 $485,000 Net income before any security gains and losses for 2021 was $1.200,000. (a) Compute the amount of net income or net loss that Thomlin should report for 2021, taking into consideration Thomlin's security transactions for 2021. Net income or net loss that Thomlin should report for 2021 (b) Prepare the journal entry to record unrealized gain or loss related to the investment in Azul Company
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 9E
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