2. On January 11, 2021, BERRY Company declared and distributed its trading securities as dividend. At the time of declaration, the investment has a carrying value of ₱500,000 and a related unrealized loss of ₱100,000. By what amount should BERRY Company charge its Retained Earnings as a result of the dividend declaration? ₱ 600,000 ₱ 500,000 ₱ 400,000 ₱ 100,000
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2. On January 11, 2021, BERRY Company declared and distributed its trading securities as dividend. At the time of declaration, the investment has a carrying value of ₱500,000 and a related unrealized loss of ₱100,000. By what amount should BERRY Company charge its
₱ 600,000
₱ 500,000
₱ 400,000
₱ 100,000
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- On January 11, 2021, BERRY Company declared and distributed itstrading securities as dividend. At the time of declaration, the investmenthas a carrying value of ₱500,000 and a related unrealized loss of₱100,000. By what amount should BERRY Company charge its RetainedEarnings as a result of the dividend declaration? Choices: ₱ 400,000₱ 600,000₱ 500,000₱ 100,000On its December 31, 2020, balance sheet, Trump Company reported its investment in equity securities, which had cost $600,000, at fair value of $560, 000. At December 31, 2021, the fair value of the securities was $585, 000. What should Trump report on its 2021 income statement as a result of the increase in fair value of the investments in 2021? a. 50. b. Unrealized loss of $15,000. c. Realized gain of $25, 000. d. Unrealized gain of $25,000.The related data of Estonia Company: On March 2, 2021, Aruba Inc. declared a cash dividend of P750,000, on which Estonia Company had an 18% ownership. The date of record is March 31, 2021, and the date of payment is April 30, 2021. On May 30, 2021, Estonia Company received a property dividend with a carrying amount of P70,000. The fair value of the property on that date is P80,000 and the fair value on June 30, 2021, which is the date of payment is P89,500. On July 15, 2021, Australia Company declared a liquidating dividend of P500,000, of which Estonia had a 15% interest. How much is the dividend income reported in the Income Statement in 2021?
- During 2021, Lavida Loca Company purchased trading securities with the following cost and market value on December 31, 2021. Cost Market value A 300,000 400,000 B 1,500,000 1,700,000 C 3,800,000 3,900,000 The entity sold Investment C on January 10, 2022 for P 4,000,000 What is the unrealized gain or loss should be reported in the income statement for 2021? a. 100,000 gain b, 100,000 loss c. 400,000 gain d. 400,000 lossDuring 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 loss2. During 2020, Earl Company purchased debt securities as a long-term investment and classified them as trading. All securities were purchased at par value. The following information is presented: Market value at Security 12/20/2020 cost $ 30,000 $ 28,000 40,000 83,000 $151,000 B. 50,000 100,000 Totals $180,000 The net holding gain or loss included in Earl's income statement for the year should be?
- S16-9 On January 6, 2023, Ling Corp. paid $5,000,000 for its 40 percent investment in True World Inc. Assume that on December 31 that same year, True World earned net income of $1,800,000 and paid cash dividends of $800,000. What method should Ling Corp. use to account for the investment in True World Inc.? Give your reason. Ignore any brokerage commission expenses. Post to the Investment in True World Inc. Common Shares T- account. What is its balance after all the transactions are posted? Journalize these three transactions on the books of Ling Corp. Include an explanation for each entry.Problem 19: 56. On its December 31, 2020 balance sheet, Polo Company reported securities measured at fair value through other comprehensive income. These securities were acquired at a cost P360,000 and had a year-end fair value of P330,000. On December 31, 2021, the fair value of the securities was P350,000. What should Polo report as 2021 income or loss in the profit or loss statement as a result of the change in market value? Problem 20: Fastfoods Company acquired the following investments classified as trading securities on August 20, 2020: Jolibee shares KFC shares 400,000 250,000 300,000 P McDonald shares On December 31, 2020, the close of the year, these investments had the following market values: Jolibee shares KFC shares 450,000 220,000 310,000 McDonald shares 57. On February 23, 2021, Fastfoods company sold the KFC shares for P230,000. How much would berecognized as gain/ (loss) on sale of securities on the sale of the KFC shares as a component of other comprehensive income?Apollo Corp. has the following investment which were held throughout 2021-2022: Fair Value Cost 12/31/21 12/31/22 Trading P300,000 P400,000 P380,000 What amount of unrealized gain or loss would Apollo Corp. report in its income statement for the year ended December 31, 2022 related to its investments? O P20,000 unrealized loss. O P20,000 unrealized gain. O P80,000 unrealized gain. O P140,000 unrealized gain.
- 24. On November 1, 2019, TUNA Company invested P600,000 in equity securities representing 20,000 ordinary shares of SARDINES Company. The investment was classified as equity security to profit or loss since the company intends to sell the security for a short-term profit. In December 31, 2019, this investment has a market value of P580,000. On January 15, 2020, TUNA Company sold the investment of P630,000. What amount of realized gain should TUNA Company recognize on the disposal of the trading security?Some of Cullumber Lake Limited's investment securities are classified as trading securities and some are classified as non- trading. The cost and fair value of each category at December 31, 2020, were as follows. Trading securities Nokn-trading securities Cost ¥96,500 ¥59,500 Fair Value ¥85,000 $64,000 Unrealized Gain (Loss) ¥(11,500 ) ¥4,500 At December 31, 2019, the Fair Value Adjustment-Trading account had a debit balance of ¥2,600, and the Fair Value Adjustment-Non-Trading account had a credit balance of ¥6,200. Prepare the required journal entries for each group of securities for December 31, 2020.A company purchases debt securities for $100,000 at the beginning of 2022. It classifies as trading securities and $60,000 as AFS securities. It sells the securities in 2023. Required For each of the following scenarios, indicate the net effect on income and other comprehensive income in each year 2022 and 2023. In each case, any unrealized decline in value below cost is expected to be recovered and is attributed to market factors. a. Fair value, end of 2022 Selling price, 2023 Note: Use a negative sign with an answer to indicate the net effect amount decreases Income or OCI. OCI End of 2022 $ 2023 b. Trading securities AFS securities $38,000 $65,000 43,000 64,000 Income Fair value, end of 2022 Selling price, 2023 End of 2022 $ 2023 (2,000)✓ $ 9,000 ✓ Trading securities AFS securities $45,000 $56,000 42,000 68,000 Note: Use a negative sign with an answer to indicate the net effect amount decreases Income or OCI. OCI (4,000) ✔ 0 x 5,000 ✓ 0 x Income 5,000 $ 5,000 ✓