The following data pertains to Traverse Co.'s investments in marketable equity securities:Select one:Oa. $55,000 gainO b. $55,000 lossc. $50,000 lossOd $50,000 gainOe $0Cost$150,000Clear my choiceMarket value12/31/24$155,00012/31/25What amount should Traverse Co. report as unrealized holding gain/loss to be included in 2025 Comprehensive Income?$100,000

Calculations: Market value on 12/31/24 $155,000 Cost ($150,000) Unrealized gain on…

The following data pertains to Traverse Co.'s investments in marketable equity securities: Select one: Cost $150,000 a. $55,000 gain O b. $55,000 loss $50 000 1 Market value 12/31/24 $155,000 What amount should Traverse Co. report as unrealized holding gain/loss to be included in 2025 Comprehensive Income? 12/31/25 $100,000

The following data pertains to Traverse Co.'s investments in marketable equity securities: Select one: Cost $150,000 a. $55,000 gain O b. $55,000 loss $50 000 1 Market value 12/31/24 $155,000 What amount should Traverse Co. report as unrealized holding gain/loss to be included in 2025 Comprehensive Income? 12/31/25 $100,000

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

ChapterA2: Investments

Section: Chapter Questions

Problem 1MCQ

See similar textbooks

Similar questions

The following data pertains to Kyne Co.’s investments in marketable equity securities: Market value Cost 12/31/22 12/31/23XYZ Stock 150,000 $155,000 $100,000ABC Stock $150,000 130,000 120,000 What amount should Kyne include as unrealized holding loss in its 2023 Net Income?a) $50,000b) $55,000c) $60,000d) $65,000e) $5,000
Use the following information on a company’s investments in equity securities to answer questions 1- 2 below. The company’s accounting year ends December 31. Investment Date of acquisition Cost Fair value 12/31/16 Date sold Selling price Ajax Company stock 6/20/16 $40,000 $35,000 2/10/17 $32,000 Bril Corporation stock 5/1/16 20,000 N/A 11/15/16 26,000 Coy Company stock 8/2/16 16,000 16,500 1/17/17 23,000 1. If the above investments are categorized as trading securities, what amount is reported for gain or loss on securities, on the 2016 income statement? 2. If the above investments are categorized as trading securities, what amount is reported for gain or loss on securities, on the 2017 income statement?
Red Company had the following portfolio of equity securities to other comprehensive income at December 31, 2018:Security Cost Market ValueA 400,000 390,000B 700,000 660,000Total 1,100,000 1,050,000If Red Company would have to sell the securities transaction cost will be incurred as follows; P20,000 and P30,000 for security A and B, respectively. In Red's December 31, 2018 statement of financial position, how much should be reported as the carrying value of the portfolio? a. 1,050,000 b. 1,060,000 c. 1,100,000 d. 1,110,000
Paul Company presented the following information pertaining to its investments in equity securities. FVPL FVOCICost P1,000,000 P1,000,000Market value December 31, 2020 1,050,000 980,000 December 31, 2019 950,000 920,000 2.What amount should Paul report as unrealized gains/losses in the shareholders' equity of its December 31, 2020 statement of financial position?
The following transactions appear on the Equity investments at fair value through profit or loss account of Chicker Corporation Date Particulars Debit Credit 03/1/x6 Purchased 40,000 shares of PLDT at P 30.75/share and 20,000 shares of Benpress at P 23/share P 1,690,000 07/03/x6 Purchased PAG-IBIG 15% bonds, face value P 4,000,000. Interest dates July 1 and Jan 1. Maturity date July 1, 20x9 4,000,000 11/5/x6 Sold 14,400 shares of PLDT at P 30/share And 4,000 shares of Benpress at P 25/share P532,000 12/31/x6 Sold PAG-IBIG bonds at 98 plus accrued interest…
Based on the presumption in IAS 27, the cost method is applied for equity securities when the percentage of ownership of another company is: Select one: A. 20% to 50%. B. Exactly 100%. C. Less than 20%. D. Over 50%.
What is a Capital Asset?, Holding Period, Calculation of Gain or Loss, Net Capital Losses (LO 4.1, 4.2, 4.3, 4.5) Charu Khanna received a Form 1099-B showing the following stock transactions and basis during 2019: Stock DatePurchased Date Sold SalesPrice CostBasis 4,000 shares Green Co. 06/04/08 08/05/19 $12,000 $3,000 500 shares Gold Co. 02/12/19 09/05/19 54,000 62,000 5,000 shares Blue Co. 02/04/09 10/08/19 18,000 22,000 100 shares Orange Co. 11/15/18 07/12/19 19,000 18,000 None of the stock is qualified small business stock. The stock basis was reported to the IRS. Calculate Charu's net capital gain or loss using Schedule D and Form 8949.
Founded on January 1, 20X1, Gehl Company had the following passive investments in equity securities at the end of 20X1 and 20X2: Equity Security Cost 12/31/X2 Fair Value A $ 96,000 $ 94,000 B 184,000 162,000 C 126,000 136,000 Required: If the company recorded a $4,000 debit to its Fair value adjustment account as its 20X2 fair value adjustment, what must have been the unrealized gain or loss reported at the end of 20X1?
During 2021, Barto Company purchased marketable equity securities as short-term investment to be measured at fair value through other comprehensive income. The cost and market value on December 31, 2021 were as follows: Security No. of Shares Cost Market Value A 5,000 500,000 550,000 B 25,000 2,800,000 2,650,000 C 40,000 2,150,000 3,950,000 The entity sold 10,000 shares of B on January 5, 2022 for P150 per share. The market price per share of Security A and Security C is P320 and P150 respectively, as of December 31, 2022. What amount should be recognized in the Profit or Loss Statement as realized gain or loss on sale of equity securities during 2022?
Hatton Inc. has equity investments at fair value through profit or loss purchased during 20x4. At the end of 2014, the securities had total market value of P 525,000. As of December 31,20x5, the records show cost and market values as follows: Investment Cost Market value 1 P 100,000 P 90,000 2 190,000 210,000 3 250,000 235,000 The gain or loss that would be reported in profit or loss as a result of the valuation of the securities at the end of 20x5 is____________.
During 2021, Opulence Company purchased marketable equity securities as short-term investment to be measured at fair value through other comprehensive income. The cost and market value on December 31, 2021 were: Security Cost Market value A 1,000 shares 300,000 350,000 B 10,000 shares 1,700,000 1,550,000 C 20,000 shares 3,150,000 2,950,000 The entity sold 10,000 shares of B on January 5, 2022 for P 1,450,000 What total amount should be charged to Retained Earnings as a result of the sale of equity securities in 2022?
On January 3, 2018,A Corp. purchased 25% of the voting common stock or C0.paying S2,500,000. A Cop. decided to use the equity method to account for this investment. Atthe ime of the investment, G Co, total stockholders' equity was S8,000,000. ACOIp. gathered the following intormation about G Co. assets and liabiiines Fair Value $500,000 1.300,0 00 0,000 Book Value S400,000 1.000,000 Buildings (10-year life) Equipment (5-year lite) Franchises (8-year life) For all other assets and liabilities, book value and fair vaue were equal. Any excess of cost over tair value was attributed to goodwill, which has not been impaired.