User Account

All Pages

What amount of unrealized gain on securities should be

Assignment Help Financial Accounting
Reference no: EM132945548

Problem 1: On February 14, 2020, Peaches Company purchased marketable equity securities to be held as trading for ?5,000,000. The entity also paid commission, taxes and other transaction costs amounting to ?200,000. The securities had a market value of ?5,500,000 on December 31, 2020. No securities were sold during 2020. The transaction costs that would be incurred on the disposal of the investment are estimated at ?100,000. What amount of unrealized gain or loss on these securities should be reported in the 2020 income statement?

a. ? 500,000 unrealized loss

b. ? 400,000 unrealized gain

c. ? 500,000 unrealized gain

d. ? 400,000 unrealized loss

Reference no: EM132945548

Questions Cloud

Explain the main sources of power : Explain the main sources of power within the organization. In addition, describe how organizational politics influenced the overarching organizational behavior.
What amount be reported as dividend income for grapes corp : Berries paid a cash dividend of ?8 per share. In the December 31, 2020 income statement of Grapes, what amount should be reported as dividend income?
What is the historical or acquisition cost of the investment : There were no other transactions in 2020 affecting the investment in Oranges Corporation. What is the historical or acquisition cost of the investment account?
Characteristics of a value driven project based enterprise : Organizations have consistently been moving towards becoming Value Driven Project Based Enterprises. This unit discusses how these enterprises have adopted an a
What amount of unrealized gain on securities should be : The securities had a market value of ?5,500,000, What amount of unrealized gain or loss on these securities should be reported in the 2020 income statement?
What would be the change in the external failure budget : What would be the change in the external failure budget, if 600,800 units are used and assuming external failures are reduced by 10%
Which interest rate is used to assign value to asset : Your direct manager has asked you to explain why the cost of debt is different from the cost of equity and to differentiate between the real risk-free rate and
What amount must deposit annually to be able to make : What amount must he deposit annually to be able to make the desired withdrawals at retirement? Your uncle Mohammed is celebrating his 33th birthday today
What was the acquisition cost of the machinery : The depreciation applicable to this fixed asset for 2021 is 1,200,000. What was the acquisition cost of the machinery

Reviews

Write a Review

Financial Accounting Questions & Answers

  What are hospitals total revenues from medicare patients

What are hospitals total revenues from Medicare Patients? What is the hospitals total inpatient revenue? What is the hospitals profit per discharge?

  Find liquidity ratios both the current and quick rations

Find Liquidity ratios, both the current and quick rations. The Tooty Fruity Ltd. company has published the balance sheet for 2019 this year.

  Prepare journal entries that should have been made

Prepare, in general journal form, all journal entries that should have been made during the fiscal year ended December 31 to record the preceding information

  What will be the adjusted balance in the accounts receivable

What will be the adjusted balance in the Accounts Receivable account on December 31, and how much gain or loss was recorded as a result of the adjustment?

  What is your yield to maturity

Abner Corporation's bonds mature in 16 years and pay 13 percent interest annually. If you purchase the bonds for $1,100, what is your yield to maturity

  What is minimum number of digits necessary

When designing a chart of accounts for this business, what is minimum number of digits necessary to represent the general ledger account code, including subsidiary ledgers?

  Compute the cost of goods destroyed

Compute the cost of goods destroyed, assuming that the gross profit is 25% of cost. Compute the cost of goods destroyed, assuming that the gross profit is 25% of sales.

  What is the spread on the issue in percentage term

If the firm wanted to net $17.17 million from this issue, how many shares must be sold? (Do not round intermediate calculations)

  Partnerships basis for determining depreciation on property

Dirk transferred depreciable property to the Frank Partnership for a one-half interest in the partnership. The property had an adjusted basis of $42,000 and a FMV of $56,000. The property was subject to a $14,000 mortgage, which was assumed by the pa..

  Determine and perform horizontal analysis

Using these data from the comparative balance sheet of Sheridan Company, perform horizontal analysis. (If amount and percentage are a decrease)

  Beatrice qualifies for the earned income credit

For 2015, Beatrice qualifies for the earned income credit. She has a daughter who is 7 years old. Her earned income and adjusted gross income for 2015 are $6200. Calculate the amount of her 2015 earned income credit.

  How much do have to pay to buy the asset

Asset generates returns of $13,500 at the end of each year for ten years. The required rate of return is 6%. How much do you have to pay to buy this asset?

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