Can entity eric recognize the cumulative gain in statement

Assignment Help Financial Accounting
Reference no: EM132626120

Question 1: Entity Eric holds a small number of shares of Angel bhd. These shares are classified at FV through OCI. On 20 December x2, the fair value of these shares is RM240,000 and the cumulative gain recognized on OCI is RM12,000. On the same date, Angel Bhd is acquired by Takeover Bhd and Entity Eric receives shares in Takeover Bhd in exchange for those in Angel Bhd. The shares are of equal fair value.

Required:

Can Entity Eric recognize the cumulative gain in the statement of profit or loss?

Question 2: Jeb signed a factoring agreement with Fine Factors. Jeb's trade receivables are as follows:

a. Group A: Total amount RM4 million. They are administered and collected by Fine Factors with recourse. It will pay Jeb 100% of the carrying amount and charge 1% on the amount each month. Jeb will reimburse in full any balance outstanding after three months

b. Group B: Total amount RM10 million. They are administered and collected by Fine Factors without recourse. It will pay Jeb 95% of the carrying amount

c. Group C: Total amount RM1 million. They are administered and collected by Jeb

Required:

Show how Jeb should treat the various trade receivables

Reference no: EM132626120

Questions Cloud

Identify the costs to implement each potential remedy : Cost-benefits Analysis (Case Study Paper): Identify the costs to implement each potential remedy or defense, including: Design and development.
Chomsky theory on the evolution of language : Chomsky's theory on the evolution of language suggests that language is generative, meaning that humans have the ability to make a number of unique sequences.
How the ability to raise additional cash by selling assets : The ability to raise additional cash by selling assets, issuing stocks, or borrowing money is? Explain in detail and provide the suitable example.
What is experience of how emotion works : What is your experience of how "emotion" works, in terms of which component comes first (or are they all at once, or does it vary based on the circumstances
Can entity eric recognize the cumulative gain in statement : Entity Eric holds a small number of shares of Angel bhd. Can Entity Eric recognize the cumulative gain in the statement of profit or loss?
Identify two traditional family therapy models : Research emotionally focused therapy (EFT) and identify two traditional family therapy models from which it was developed.
Calculate the amortized cost over the five years : Calculate the amortized cost over the five years. The interest rate that exactly discounts the stream of future cash payments through maturity
Three crucial aspects of the environment : Three crucial aspects of the environment are parents, peers, and particular situations. How much, and in what ways, do each of these aspects contribute to perso
Compare the visual elements of cultural familiarity : Compare and contrast the visual elements of cultural familiarity. Explain why it is important to use culturally familiar visuals that are quite different.

Reviews

Write a Review

Financial Accounting Questions & Answers

  Production levels increase

Describe the behavior of the following 4 items as production levels increase:

  During march the following transactions were completedmarch

during march the following transactions were completed.march 1- issued common stock for 20000 cashmarch 2- purchased

  How much cash did randys collect from its tenants

Randy's reported rent revenue for 2014 of $64,200.- How much cash did Randy's collect from its tenants during 2014?

  Campaigns are debited to the cost of services account

At the end of August, both the Vault Bank and Take Off Airlines campaigns were completed. The costs of completed campaigns are debited to the cost of services account. Required: Journalize the four summary entries on August 31 to record each of the f..

  Gain on this asset will impact the tax obligation

In July of 2009, Mr. Mann, a sole proprietor who performs excavating services, purchased and put to use for business a piece of heavy equipment for $36,500. Explain how any gain on this asset will impact the tax obligation for Mr. Mann as the proprie..

  Affecting client business risk and acceptable audit risk

What are the major factors affecting client business risk and acceptable audit risk for this audit? What is the most appropriate document(s) to use for sampling procedures? What are some attributes that you would list on your work paper when doing yo..

  Enforce in this environment

Betty's Bakery is a start-up bakery that employs Betty, the owner, as well as one sales clerk, and one baker. Which cash receipt controls may be hardest to enforce in this environment

  Estimate the possible range of the ipo price

A private company that designs, manufactures and distributes certain consumer products. In this fiscal year, Detox had revenues of $325M and earnings of $15M. Detox company has filed a registration statement with the SEC for its IPO.

  Find what form of the resolution would want to use

Explain what form of the resolution would you want to use? and why. If you were involved in a business dispute with a regular customer

  How much depreciation should bello enterprises record

How much depreciation should Bello Enterprises record on this machine for the year 2015? What amount should this machine be recorded by Bello

  What is the profit on this customer

A customer orders $30,000 worth of goods with direct costs of $24,000. The customer places 200 orders, orders 240 unique items, 1600 items, and makes 22 returns. What is the profit (loss) on this customer?

  What is the tax effect on toolson of the distribution

If the property has a basis of $20,000 to Toolson and has a current value of $45,000 what is the tax effect on Toolson, Andy and Cherie of this distribution

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd