Determine the amount taken to other comprehensive income

Assignment Help Accounting Basics

Reference no: EM132768738

Question - Stock Rights - Equity Investments at fair value through Other Comprehensive Income -Melody Corporation holds ordinary shares of Music, Inc. acquired as follows: Date of Acquisition Shares Total Cost September 19, Year 2 750 P60,000 July 16, Year 1 1,250 110,000 The shares above were classified as equity investments at fair value through other comprehensive income. Fair values on December 31, Year 1 and Year 2 were P85 and P90 respectively. In Year 3, Melody Corp. received 2,000 rights to purchase Music, Inc. ordinary shares at P80 per share. Five rights are required to purchase one share. Melody used rights to purchase additional 300 shares of Music, Inc. when each share sells at P100. Subsequently, Melody sold the remaining rights at P4.50 each. At December 31, Year 3, Music Inc. ordinary shares sell at P98.

REQUIRED -

(a) Determine the amount of the equity account Unrealized gains or Losses on Equity Investments at fair value through Other Comprehensive Income as a result of the change in fair value for years 1 and 2.

(b) Determine the amount taken to other comprehensive income as a result of the change in fair value for years 1 and 2.

Reference no: EM132768738

Questions Cloud

Write description of your proposed capstone project : Write a 500-750 word description of your proposed capstone project topic. Include the following: The problem or issue, intervention, quality initiative.

What would be the impact of IFRS adoption on US companies : In October 2002, the FASB and the International Accounting Standard Board, What would be the impact of IFRS adoption on US companies

Design and implement family-style dining at facility : Examine the main structural and process changes that will be required to design and implement family-style dining at this facility.

Integrate cultural considerations in your interventions : In order to gain an insight into the world of elder adults, it is important to understand how they view themselves and the values they hold.

Determine the amount taken to other comprehensive income : Determine the amount taken to other comprehensive income as a result of the change in fair value for years 1 and 2

Identify real-world organization : Identify a real-world organization with which you are personally familiar, or that you researched on the internet or in the CSU-Global Library.

Calculate the accumulated depreciation on June : Calculate the accumulated depreciation on 30 June 2019 if using straight line method of depreciation (assume financial year 1 July - 30 June)

Introductory framework for project management office : Identify an organization that could use a PMO. Characterize the type of PMO structure you would recommend for the organization.

Describe strategies to make the off-label use : Describe strategies to make the off-label use and dosage of drugs safer for children from infancy to adolescence. Include descriptions and names of off-label.

User Account

All Pages