what gain would be recognized in the financial statements for the year ended 31 December 2020?
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A: When an entity purchases or acquires another entity then after this acquisition, a new…
Q: An entity acquired an investment in equity instrument for P800,000 on 31 March 2020. The direct…
A: Cost of equity instrument = P800,000 + P140,000 = P940,000 Fair value = P1,100,000
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Q: EE Inc. purchased an equipment on March 31, 2019. The selling price of the asset is equal to its…
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A: Investment in shares is the investment which is done by the investor to get gain by the increase in…
Q: Determine the unrealized gain/loss on December 31, 2021? Determine the net gain/loss…
A: 1.Unrealized profit or losses refer to profits or losses that have not occurred in actual but has…
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A:
Q: On January 1, 2019, Blackpink Company purchased nontrading equity securities. On December 31, 2019,…
A: Since you have asked two different questions under a single question, kindly resubmit another…
Q: Difficult Company acquiredan equity instrument for P3,600,000 on March 31, 2020 to be measured at…
A: Given that: Acquisition costs = P3,600,000 Direct costs incurred = P630,000 At the end, Fair value…
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A: The calculation of purchase consideration is as follows: Purchase Consideration=Cash Payment+Fair…
Q: 4. An entity acquired an investment in equity instrument for P800,000 on 31 March 2020. The direct…
A: When fair value of the instruments is more the acquisition cost, then gain on the values of…
Q: On January 1, 2021, Jeremiah Company purchased trading equity investments which are irrevocably…
A: Unrealized profit or losses refer to profits or losses that have not occurred in actual but has…
Q: An entity acquired an investment in equity instrument for P800,000 on 31 March 2020. The direct…
A: Acquisition cost on Mar 31,2020 = Purchase price + direct acquisition costs = 800,000 + 140,000 =…
Q: On July 1, 2019, Parent Company acquired the net assets of Subsidiary Company for a consideration…
A: Answer:- When an entity purchases or acquires another entity then after this acquisition, a new…
Q: During 2021, Manu Company purchased shares of stock classified as short-term investment to be…
A: Unrealized gain or loss is the increase or decrease in the value of an asset that is still to be…
Q: On December 31, 2020, Luffy Company's investment in subsidiary account showed a balance of P400,000.…
A: Revaluation is a permissible method under IFRS in which the assets of a company are recorded at…
Q: An entity acquired an investment in equity instrument for P800,000 on 31 March 2020. The direct…
A: Unrealized Gain: It is a potential gain which is earned from the investment when the company earns…
Q: During 2020, Strawberry Corporation purchased several equity securities, all of which are designated…
A: Here discuss about the purchase and sale of share investment which are made through the fair value…
Q: In 2019, Josiah Company purchased nontrading equity in investments which are irrevocably designated…
A: Answer: As per IFRS 9, Financial instruments, there are two different methods for classification of…
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A: The details of two investments made by the company are as follows: Investment 1 – Acquired on…
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Q: On January 1, 2019, an entity purchased 25% of the outstanding ordinary shares of another entity for…
A: Excess of cost over the carrying amount of net assets acquired (Jan 1, 2019):
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Q: 1. kol Company acquired a financial asset as its market value of Php5,000,000. Broker fees of…
A: transaction price= Invested money+legal fees+other cost-recoveries.
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A: Investment can be defined as the finance avenue where the funds are being allocated to those…
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A: Therefore, option (a) is the correct answer.
Q: Question: The total amount reported in 2019 profit or loss is? On January 1, 2019, an entity…
A: INVESTMENT IN SHARES OF ANOTHER COMPANY IS RECORDED AS AN ASSET IN SEPERATE FINANCIAL STATEMENT OF…
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A:
Q: Question: The carrying amount of the investment on December 31, 2020? On January 1, 2019, an entity…
A:
Q: On July 1, 2019, Parent Company acquired the net assets of Subsidiary Company for a consideration…
A: When an entity purchases or acquires another entity then after this acquisition, a new surviving…
Q: An entity acquired an investment in equity instrument for P800,000 on 31 March 2020. The direct…
A: Company means the form of business where management is separately from owner and have perpetual…
Q: At the beginning of the current year, Jason Company acquired non-trading equity instrument for…
A: Solution: Cost of equity instruments = P4,000,000 + P700,000 = P4,700,000 Fair value of instrument…
Q: An entity acquired an investment in equity instrument for P800,000 on 31 March 2020. The direct…
A: As per FVTOCI the transaction cost incurred are to added to cost of investment only on initial…
Q: uestion: What is the 2019 net investment income?
A: Calculation of Fair Value of investment as on 31 Dec 2019 Particulars Amount Carrying…
Q: On January 1, 2019, Pacita Corp. purchased marketable equity securities to be held for trading…
A: For measurements under FVTOCI the transaction cost will be debited to profit or loss account…
Q: Gera Corporation owns two financial investments in the shares of listed companies. Details of which…
A: The details of investment of a company are as follows: Investment 1 – Acquired on September 1,…
Q: On January 1, 2019, FFF Company acquired a 10% interest in an investee for P3,000,000. The…
A: Carrying amount: The carrying amount is the recorded cost of an asset, net of any accumulated…
Q: 5. In 2020, the entity purchased the following equity securities for the purpose of selling them in…
A: Equity Securities An instrument that represents a claim on a corporation's assets and profits and…
Q: 19. On May 01, 2020, Maria Company acquired the net assets of Luisa Company for a consideration…
A: As per IFRS 3 Contingent consideration requires the acquirer to recognize any contingent…
Q: what gain would be recognized in the financial statements for the year ended 31 December 2020?
A: The gain to be recognized in the financial statements is based on purchase value of investment and…
Q: January 1, 2021, ABC acquired a 10% interest in an investee for P3,000,000. The investment was…
A: This is the method of an accounting which is used by a company to record the profits earned through…
Q: Gera Corporation owns two financial investments in the shares of listed companies. Details of which…
A: Investment in shares means where one company buys the share of another company and held as…
Q: On January 1, 2019, FFF Company acquired a 10% interest in an investee for P3,000,000. The…
A: Solution- Particulars Amount $ Existing 10% Interest Remeasured at fair value 4500000 New 15%…
Q: On January 1, 2019, FFF Company acquired a 10% interest in an investee for P3,000,000. The…
A: Solution- Particular Amount $ Fair value of 10% Interest 4500000 Historical cost 3000000…
Q: Luxemburg Company purchased the following investments during 2021:…
A: Luxemburg Company purchased the investments in 2021 are : Security A Cost = P180000 Transaction cost…
Q: On January 1, 2019, an entity purchased 15,000 shares of another entity representing a 12% interest…
A: Profit and loss Account In the profit and loss account which includes all type of revenues and…
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- During 2021, Anthony Company purchased debt securities as a long-term investment and classified them as trading. All securities were purchased at par value. Pertinent data are as follows: The net holding gain or loss included in Anthonys income statement for the year should be: a. 0 b. 3,000 gain c. 9,000 loss d. 12,000 lossHamilton Companys balance sheet on January 1, 2019, was as follows: Korbel Company is considering purchasing Hamilton (a privately held company) and discovers the following about Hamilton: a. No allowance for doubtful accounts has been established. A 10,000 allowance is considered appropriate. b. Marketable securities are valued at cost. The current market value is 60,000. c. The LIFO inventory method is used. The FIFO inventory of 140,000 would be used if the company is acquired. d. Land, included in property, plant, and equipment, which is recorded at its cost of 50,000, is worth 120,000. The remaining property, plant, and equipment is worth 10% more than its depreciated cost. e. The company has an unrecorded trademark that is worth 70,000. f. The companys bonds are currently trading for 130,000. g. The pension liability is understated by 40,000. Required: 1. Compute the amount of goodwill if Korbel agrees to pay 500,000 cash for Hamilton. 2. Next Level What are the reasons that the book value of Hamiltons net identifiable assets differ from their market value? 3. Prepare the journal entry to record the acquisition on the books of Korbel assuming Hamilton is liquidated. 4. If Korbel agrees to pay only 400,000 cash, how much goodwill exists? 5. If Korbel pays only 400,000 cash, prepare the journal entry to record the acquisition on its books, assuming Hamilton is liquidated.Refer to the information in RE13-11. Assume that on December 31, 2019, the investment in Cornett Company stock has a market value of 10,500. Prepare the year-end journal entry to record the unrealized gain or loss.
- An entity acquired an investment in equity instrument for P800,000 on 31 March 2020. The direct acquisition costs incurred were P140,000. On 31 December 2020 the fair value of the instrument was P1,100,000 and the transaction costs that would be incurred on sale were estimated at P120,000. If the investment is designated as FA@FVTOCI, what gain would be recognized in the financial statements for the year ended 31 December 2020?An entity acquired an investment in equity instrument for P800,000 on 31 March 2020. The direct acquisition costs incurred were P140,000. On 31 December 2020 the fair value of the instrument was P1,100,000 and the transaction costs that would be incurred on sale were estimated at P120,000. If the investment is designated as FA@FVTOCI, what gain would be recognized in the financial statements for the year ended 31 December 2020? Group of answer choices A) P420,000 B) P160,000 C) Nil D) P40,000An entity acquired an investment in equity instrument for P800,000 on 31 March 2020. The direct acquisition costs incurred were P140,000. On 31 December 2020 the fair value of the instrument was P1,100,000 and the transaction costs that would be incurred on sale were estimated at P120,000. If the investment is designated as FA@FVTOCI, what gain would be recognized in the financial statements for the year ended 31 December 2020? Group of answer choices P40,000 Nil P420,000 P160,000
- An entity acquired an investment in equity instrument for P800,000 on 31 March 2020. The direct acquisition costs incurred were P140,000. On 31 December 2020 the fair value of the instrument was P1,100,000 and the transaction costs that would be incurred on sale were estimated at P120,000. If the investment is designated as FA@FVTOCI, what gain would be recognized in the financial statements for the year ended 31 December 2020? a. Nilb. P40,000 c. P420,000 d. P160,000An entity acquired an investment in equity instrument for P800,000 on 31 March 2020. The direct acquisition costs incurred were P140,000. On 31 December 2020 the fair value of the instrument was P1,100,000 and the transaction costs that would be incurred on sale were estimated at P120,000. If the investment is designated as FA@FVTOCI, what gain would be recognized in the financial statements for the year ended 31 December 2020? Nil P420,000 P160,000 P40,000Difficult Company acquiredan equity instrument for P3,600,000 on March 31, 2020 to be measured at fair value through other comprehensive income. The direct costs incurred amounted to P630,000. On December 31, 2020, the fair value of the instrument was P4,950,000 and the transaction costs that would be incurred on the sale of the investment were estimated at P540,000. What amount of unrealized gain or loss on these securities should be reported in other comprehensive income for the year 2020?