What is the carrying value of available for sale investment

Assignment Help Financial Accounting
Reference no: EM132718531

On October 1, 2020, Peter Senen Company invests P3,000,000 in abound whose interest payments are linked to the price of gold. On October 1, 2020, the derivative contract has a fair value of P150,000. Peter Senen Company has a business model with the objective of trading all financial instruments.

Problem 1: What is the carrying value of the available for sale investment on October 1, 2020?

a. P3,000,000

b. P150,000

c. P3,150,000

d. P2,850,000

Reference no: EM132718531

Questions Cloud

Perception of marijuana after the 1930 : What role did Harry J. Anslinger's rhetoric and propaganda (gore files) regarding marijuana prohibition in the 1930s contribute to the public perception of mari
Make responsibility report for real estate products division : Make responsibility report for the Real Estate Products Division for 2020. Sunny Co. is operated as a profit center. Sales for the division were budgeted
What test taking strategies you have implemented : As you near the completion of your personalized study plan, share with your classmates what test taking strategies you have implemented to prepare for your.
What amount of gain must Doug Fir Timber Corp recognize : The land was subject to a mortgage of $170,000 which the shareholders assumed. What amount of gain must Doug Fir Timber Corp recognize
What is the carrying value of available for sale investment : Peter Senen Company invests P3,000,000 in abound. What is the carrying value of the available for sale investment on October 1, 2020?
Bentham act utilitarianism and mill utilitarianism : Explain the difference between Bentham's Act Utilitarianism and Mill's Utilitarianism.
How to journalize the transaction : How to journalize the transaction - Purchased 40 8%, $1,550 Leeds Co. bonds for $62,000 cash. Interest is payable annually on January 1, 2020
Prepare general journal entries to record balance-day adjust : Prepare general journal entries (narations are required) to record the balance-day adjustment if on the year end reporting date four days wages were owing
How should Canadian account for the investment : How should Canadian account for the $40 million investment it will make to produce a world-class prepared meats facility

Reviews

Write a Review

Financial Accounting Questions & Answers

  Explain the biological importance of chemical bonds

1. Explain the biological importance of chemical bonds. 2. List the properties of water and what make them so critical to life

  Importance of properly recording the potential balance sheet

Discuss the importance of properly recording the potential balance sheet items current liabilities and contingencies; including what would be over and understated.

  Prepare the journal entry to record the write-off

Prepare the journal entry to record the write-off. e) Repeat part (d) assuming that Lexington uses the direct write-off method instead of the allowance method in accounting for uncollectable accounts receivable.

  Prepare the requirements using the fifo method

Write one page single space, comparing these two methods: key differences, and recommends which method should be used for this company and why.

  Illustrate what account was debited to amortize the discount

What is the unamortized amount of the discount or premium account at the beginning of the period? Illustrate what account was debited to amortize the discount or premium?

  Life insurance premiums paid on key officers amounted

XYZ is a calendar year, accrual basis C corporation headquartered in St. Paul that provides advertising services to tour and travel companies. Life insurance premiums paid on key officers amounted to $5,000. Identify which items of XYZ in 2016 (on th..

  What is the maturity value of the note

Megan MacLaren, promise to pay Concord, Inc., $900, 90 days from date, at 14 percent interest.

  Explain how alpine ltd would account for the revenue

Explain how Alpine Ltd would account for the revenue associated with this transaction in accordance with the requirements of AASB 15 'Revenue'.

  How much will each class of claimants receive

How much will each class receive if the cash proceeds from the sale of the building amount to only $12.5 million? How much will each class of claimants receive?

  Should management accept this new project

Management is considering a project with sales of $100,000, variable expenses of $60,000, fixed costs of $40,000; and an asset investment of $150,000. Should management accept this new project?

  Make the necessary adjusting journal entries for additional

Make the necessary adjusting journal entries for the additional information. Stocktake as at 31 December 2018 revealed inventory cost amount of RM80,600,000

  Tonnes of pulps

Compute the number of tonnes of pulps completed and transferred out during june

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