User Account

All Pages

How much should reported as accumulated net unrealized gain

Assignment Help Accounting Basics
Reference no: EM132571489

Question - ABC, Inc. acquired 50,000 ordinary shares of AAA for P5 per share and 125, 000 ordinary shares of BBB Corp for P10 per share on January 2, 2016. Both AAA Inc. and BBB Corp have P500,000 ordinary shares outstanding. Both securities are being held as long-term investments. Changes in retained earnings for AAA and BBB for 2016 and 2017 are as follows:

AAA, Inc. BBB Corp

Retained earnings, 1/1/2016 P1, 000,000 (P175,000)

Cash dividends, 2016 (125, 000)

Profit for 2016 200, 000 325, 000

Retained earnings, 12/31/2016 1,075,000 150,000

Cash dividends, 2017 (150, 000) (50, 000)

Profit for 2017 300, 000 125, 000

Retained earnings, 12/31/2017 1,125,000 225,000

Market value of share:

12/31/2016

12/31/2017

P7.00

6.50

P12.00

15.00

Required - How much should be reported as accumulated net unrealized gain or loss- OCI in equity as of December 31, 2017?

a. P75,000 gain

b. P25,000 loss

c. P25,000 gain

d. P0

e. Answer not given

Reference no: EM132571489

Questions Cloud

Identify what the probity requirements : Identify what the probity requirements and related conventions are in your organisation as they relate to preparing the organisation's budget.
Do a pi and payback analysis : Do a PI and Payback Analysis, and then make a recommendation to Manny on which option is the more financially-sound investment.
Implications of different payout levels for gainesboro : What are the implications of different payout levels for Gainesboro's capital structure and unused debt capacity?
World of global based environmental issues : Do you think that traditional environmental organizations are ineffective in today's world of global based environmental issues
How much should reported as accumulated net unrealized gain : How much should be reported as accumulated net unrealized gain or loss- OCI in equity as of December 31, 2017
Why do managers allocate overhead costs to products : How do cost flows using activity-based costing differ from cost flows using one plantwide rate? Why do managers allocate overhead costs to products?
What is the variable overhead cost variance : What is the variable overhead cost variance? During January, Austin Company actually used 2,100 machine hours to make 510 chairs.
Calculate the depreciation expense for the third year : Murrays Ltd. purchased a new bus for $200,000. Calculate the depreciation expense for the 3rd year for each of the methods below. Show your solutions
Locate the vision statement of an organization : Locate the vision statement of an organization of your choice and explain the vision statement's importance.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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