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Ewok Enterprises recently elected the fair value option to account for its investment in Yoda Inc....
unrealized holding gain or loss Flounder Corporation has elected to use the fair value option for...
unrealized holding gain or loss
Flounder Corporation has elected to use the fair value option for one of its notes payable. The note was issued at an effective rate of 10% and has a carrying value of $13,000. At year-end, Flounder's borrowing rate (credit risk) has declined; the fair value of the note payable is now $14,800. Determine the unrealized holding gain or loss on the note. (Enter loss using either a negative sign preceding the number eg.-2.945 or parentheses...
Question 26 Martinez Corporation has elected to use the fair value option for one of its...
Question 26 Martinez Corporation has elected to use the fair value option for one of its notes payable. The note was issued at an effective rate of 10% and has a carrying value of $15,000. At year-end, Martinez’s borrowing rate (credit risk) has declined; the fair value of the note payable is now $16,300. Determine the unrealized holding gain or loss on the note. (Enter loss using either a negative sign preceding the number e.g. -2,945 or parentheses e.g. (2,945).)...
PM Distributors began Year 2 with Equity Investments of $8,400 (which consisted of a single investment)...
PM Distributors began Year 2 with Equity Investments of $8,400 (which consisted of a single investment) as well as a debit balance of $900 in the Fair Value Adjustment − Equity Investments account. PM does not have significant influence over the investee, and the investment has a readily determinable fair value. This trading security was sold for $9,300 during Year 2. How much was the gain or loss for the sale of this investments and how is it recorded? A....
During the year, a company’s investment in debt securities increases in fair value, resulting in an...
During the year, a company’s investment in debt securities increases in fair value, resulting in an unrealized gain on the investment. The investment is not sold by the end of the year. The company is considering whether to report the unrealized gain as a component of net income or as a component of other comprehensive income. Under which reporting requirement would the company have a higher ending balance of total shareholders’ equity? A. As a component of net income B....
Assume the fair value option for financial assets and liabilities is not elected. Which of the...
Assume the fair value option for financial assets and liabilities is not elected. Which of the following would not be an item classified separately under other comprehensive income? 1) Foreign currency items 2) Adjustments to record funded status of pension plans 3) Unrealized gains (losses) on available‐for‐sale debt securities 4) Gains (losses) on sale of treasury stock
Brief Exercise 14-14 Shonen Knife Corporation has elected to use the fair value option for one...
Brief Exercise 14-14 Shonen Knife Corporation has elected to use the fair value option for one of its notes payable. The note was issued at an effective rate of 11% and has a carrying value of $16,000. At year-end, Shonen Knife's borrowing rate (credit risk) has declined; the fair value of the note payable is now $17,500. Determine the unrealized holding gain or loss on the note. (Enter loss using either a negative sign preceding the number e.g. -2,945 or...
The investments of Charger Inc. include a single investment: 18,440 shares of Raiders Inc. common stock...
The investments of Charger Inc. include a single investment: 18,440 shares of Raiders Inc. common stock purchased on February 24, Year 1, for $37 per share including brokerage commission. These shares were classified as trading securities. As of the December 31, Year 1, balance sheet date, the share price had increased to $45 per share. Required: A. Journalize the entries to acquire the investment on February 24, and record the adjustment to fair value on December 31, Year 1. Refer...
19. Porter Company purchased 1,400 shares of the Krafty Group common stock for $53,200 (i.e., $38...
19. Porter Company purchased 1,400 shares of the Krafty Group common stock for $53,200 (i.e., $38 per share) at the beginning of the current year. There were 28,000 outstanding Krafty shares on the date of acquisition. Porter Company classifies its investment in Krafty as part of its available-for-sale portfolio. Total stockholders' equity of Krafty Company is $1,090,000 on the date of acquisition. Krafty reported $350,000 in net income and declared and paid $1.70 per share cash dividends at year-end. Read...
Fair Value Journal Entries, Available-for-Sale Investments The investments of Steelers Inc. include a single investment: 11,900...
Fair Value Journal Entries, Available-for-Sale Investments The investments of Steelers Inc. include a single investment: 11,900 shares of Bengals Inc. common stock purchased on September 12, Year 1, for $12 per share including brokerage commission. These shares were classified as available-for-sale securities. As of the December 31, Year 1, balance sheet date, the share price declined to $9 per share. a. Journalize the entries to acquire the investment on September 12 and record the adjustment to fair value on December...
Affymetrix, Inc., reported a net gain of $79,000 on its foreign assets due to the weakening...
Affymetrix, Inc., reported a net gain of $79,000 on its foreign assets due to the weakening of the U.S. dollar in 2011. In the same year, the company disclosed unrealized gains of $2,271,000 on its available-for-sale securities and a $211,000 unrealized gain on its trading securities. The company also reported a $1,710,000 loss on the sale of some equipment. Which of the following best describes the impact of these transactions on Affymetrix, Inc.’s accounts? A) $ 851,000 increase to net...
unrealized holding gain or loss
Flounder Corporation has elected to use the fair value option for one of its notes payable. The note was issued at an effective rate of 10% and has a carrying value of $13,000. At year-end, Flounder's borrowing rate (credit risk) has declined; the fair value of the note payable is now $14,800. Determine the unrealized holding gain or loss on the note. (Enter loss using either a negative sign preceding the number eg.-2.945 or parentheses...
Brief Exercise 14-14 Shonen Knife Corporation has elected to use the fair value option for one of its notes payable. The note was issued at an effective rate of 11% and has a carrying value of $16,000. At year-end, Shonen Knife's borrowing rate (credit risk) has declined; the fair value of the note payable is now $17,500. Determine the unrealized holding gain or loss on the note. (Enter loss using either a negative sign preceding the number e.g. -2,945 or...
19. Porter Company purchased 1,400 shares of the Krafty Group common stock for $53,200 (i.e., $38 per share) at the beginning of the current year. There were 28,000 outstanding Krafty shares on the date of acquisition. Porter Company classifies its investment in Krafty as part of its available-for-sale portfolio. Total stockholders' equity of Krafty Company is $1,090,000 on the date of acquisition. Krafty reported $350,000 in net income and declared and paid $1.70 per share cash dividends at year-end. Read...
Fair Value Journal Entries, Available-for-Sale Investments The investments of Steelers Inc. include a single investment: 11,900 shares of Bengals Inc. common stock purchased on September 12, Year 1, for $12 per share including brokerage commission. These shares were classified as available-for-sale securities. As of the December 31, Year 1, balance sheet date, the share price declined to $9 per share. a. Journalize the entries to acquire the investment on September 12 and record the adjustment to fair value on December...
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