What is The Net unrealized Gain (Loss) each year? Is the Net unrealized Gain (Loss) taxable?
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What is The Net unrealized Gain (Loss) each year?
Is the Net unrealized Gain (Loss) taxable?
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- At December 31, 2021, Hull-Meyers Corp. had the following investments that were purchased during 2021, its first year of operations: Amortized cost Fair Value Trading Securities: Security A $ 940,000 $ 954,000 Security B 145,000 139,200 Totals $ 1,085,000 $ 1,093,200 Securities Available-for-Sale: Security C $ 740,000 $ 816,000 Security D 940,000 956,600 Totals $ 1,680,000 $ 1,772,600 Securities to Be Held-to-Maturity: Security E $ 530,000 $ 540,800 Security F 655,000 649,200 Totals $ 1,185,000 $ 1,190,000 No investments were sold during 2021. All securities except Security D and Security F are considered short-term investments. None of the fair value changes is considered permanent. Complete the following table. Reported on Balance Sheet as: Unrealized gain (loss) included in: Current assets Noncurrent assets Net Income…At December 31, 2021, Hull-Meyers Corp. had the following investments that were purchased during 2021, its first year of operations: Amortized cost Fair Value Trading Securities: Security A $ 980,000 $ 993,000 Security B 185,000 180,200 Totals $ 1,165,000 $ 1,173,200 Securities Available-for-Sale: Security C $ 780,000 $ 852,000 Security D 980,000 998,200 Totals $ 1,760,000 $ 1,850,200 Securities to Be Held-to-Maturity: Security E $ 570,000 $ 581,600 Security F 695,000 689,400 Totals $ 1,265,000 $ 1,271,000 No investments were sold during 2021. All securities except Security D and Security F are considered short-term investments. None of the fair value changes is considered permanent. Required:Complete the following table. (Amounts to be deducted should be indicated with a minus sign.)On January 1, 2020, Wimp Corporation purchased P2,000,000 10% bonds for P2,051,510 (including broker’s commission of P20,000). Interest is payable annually every December 31. The bonds mature on December 31, 2022. The prevailing market rate for the bonds is 9% at December 31, 2020. 1.) If the bonds are classified as FA@FVTOCI, what is the amount to be recognized as fair value adjustment loss in the 2020 other comprehensive income of the entity? 2.) If the entity sold the investment on Dec. 31, 2020 at fair value and bonds are classified as FA@FVTOCI, what will be the reclassification adjustment to be reported by the entity?
- In 2019, Mickey Mouse Company purchased trading securities for P2,000,000. In the year ending 2019, Mickey Mouse recognized unrealized gain of 300,000.Below is the composition of the composition of the portfolio of trading securities in December 2020. security cost market a 400,000 700,000 b 850,000 1,000,000 c 750,000 500,000 What amount of unrealized gain or loss should be reported by Mickey Mouse Company in the year 2020?5. On May 1, 2019, Ed Company purchased a short-term P2.000.000 face value, 9% debt instruments for P1,860,000 including the accrued interest and classified it as a trading security. The debt instruments mature on January 1, 2022, and pay interest semi-annually on January 1 and July1. On December 31, the fair market value of the instruments is 98. On March 2, 2020, Ed sold the trading securities for P1,980,000. How much should Ed report the investment on December 31, 2019? 1,960,000 1,800,000 1,860,000 1,980,000 6. On October 1, 2019, Kite Corporation purchased a debt security having a face value of P3,000,000 with an interest rate of 10% for P3,200,000 inclusive of the accrued interest to be held as financial assets at amortized cost. A total of P50,000 was incurred and paid by Kite in relation to the acquisition of the debt instrument. The bonds mature on January 1, 2024, and pay interest semi-annually on January 1 and July 1. On December 31, 2019, the bonds had a market value of…In 2019, Osgood Corporation purchased $8.5 million worth of 10-year municipal bonds at face value. On December 31, 2021, the bonds had a fair value of $2,800,000 and Osgood reclassified the bonds from held-to-maturity to trading securities. Osgood's December 31, 2021, balance sheet and the 2021 income statement would show the following: Investment inbonds (TS) Incomestatementloss oninvestments a. $ 2,800,000 $ 0 b. $ 2,800,000 $ 5,700,000 c. $ 8,500,000 $ 5,700,000 d. $ 8,500,000 $ 0 Option b. Option d. Option c. Option a.
- 10 A dealer in securities has the following for the year 2018: Sale of securities held for sale in the ordinary course P4,000,000 Cost of securities held for sale in the ordinary course 2,500,000 Supplies expense, net of VAT 300,000 Rent expense, net of VAT 500,000 The OUTPUT VAT shall be:On its December 31, 2020, balance sheet, Cullumber Company reported its investment in equity securities, which had cost $720000, at fair value of $656000. At December 31, 2021, the fair value of the securities was $693000. What should Cullumber report on its 2021 income statement as a result of the increase in fair value of the investments in 2021?22 A dealer in securities has the following for the year 2018: Sale of securities held for sale in the ordinary course P4,000,000 Cost of securities held for sale in the ordinary course 2,500,000 Supplies expense, net of VAT 300,000 Rent expense, net of VAT 500,000 The Vat payable shall be:
- On January 1, 2020, Alaska Corporation purchased P1,000,000 10% bonds for P1,051,510 (including broker’s commission of P20,000). Interest is payable annually every December 31. The bonds mature on December 31, 2022. The prevailing market rate for the bonds is 9% at December 31, 2020. Which statement is correct if the bonds are classified as FA@FVTOCI? a. The amount to be recognized in 2020 profit or loss is P100,000. b. The amount to be reported on the entity’s December 31, 2020 statement of financial position is P1,035,630. c. The amount to be recognized in 2020 other comprehensive income is P33,900. d. None of theseOn January 1, 2020, Blue Company purchased P500,000 8% bonds for P475126 (including broker’s commission of P20.000) Interest is payable annually every December 31. The bonds mature on December 31, 2022. The prevailing parget rate for the bonds is 9% on December 31. 2020. Round off present value factors to four 4 decimal places and final answers to the nearest peso. If the investment is classified as financial asset at fair value through other comprehensive income determine the amount to be recognized in 2020 other comprehensive income. P 47, 513 P 76,088 P 12,891 P 8,575On April 30, 2015, Company acquired 10%, P100,000 bonds dated January 1, 2021 at 102. If the purchase price excludes interest, how much is the initial carrying amount of the investment? If the purchase price includes interest, how much is the initial carrying amount of the investment?
