Skywalker Limited purchased shares of Jedi Jewelers during 2015 for $124,000. Skywalker elected the fair value...
Skywalker Limited purchased shares of Jedi Jewelers during 2015 for $124,000. Skywalker elected the fair value option for accounting for this investment. At year end 2015, 2016, and 2017, this investment had a fair value of $120,000, $130,000, and $135,000, respectively. How will this investment be reported on the Balance Sheet at year−end, 2017?
A. Investment in Jedi−$130,000, plus Fair Value Adjustment−Fair Value Option − $5,000
B.Investment in Jedi−$124,000, plus Fair Value Adjustment−Fair Value Option−$11,000
C.Investment In Jedi−$124,000
D.Investment in Jedi−$135,000
Homework Answers
Skywalker Limited purchased shares of Jedi Jewelers during 2015 for $124,000.
Skywalker elected the fair value option for accounting for this investment.
At year end 2015, 2016, and 2017, this investment had a fair value of $120,000, $130,000, and $135,000, respectively.
Investment in shares of Jedi Jewelers will be reported on the Balance Sheet at year−end, 2017 at the purchase price i.e. $124,000 and appreciation in the value of investment will be reported as Fair Value Adjustment−Fair Value Option−$11,000
Thus, Correct option is (B) i.e. Investment in Jedi−$124,000, plus Fair Value Adjustment−Fair Value Option−$11,000
Kindly comment if you need further assistance. Thanks
Add Answer to:
Skywalker Limited purchased shares of Jedi Jewelers during 2015
for $124,000. Skywalker elected the fair value...
Ewok Enterprises recently elected the fair value option to account for its investment in Yoda Inc....
Ewok Enterprises recently elected the fair value option to account for its investment in Yoda Inc. Ewok purchased the shares for $209,000 and the shares are currently trading for $195,000 at year-end. What is the amount of gain or loss reported at year-end for this investment and where is this gain or loss reported? O A. Unrealized Gain of $14,000, reported as part of Net Income. OB. Unrealized Gain of $14,000, reported as part of Other Comprehensive Income. O C....
er 15 Investments and Fair Value Accounting PR 15-3B Stock investment transactions, equity method and available-for-sale...
er 15 Investments and Fair Value Accounting PR 15-3B Stock investment transactions, equity method and available-for-sale 03.3.4 securities Glacier Products Inc. is a wholesaler of rock climbing gear. The company began operations on January 1, 2016. The following transactions relate to securities acquired by Glacier Products Inc., which has a fiscal year ending on December 31: 2016 Jan. 18. Purchased 9,000 shares of Malmo Inc. as an available for sale investment at $40 per share, including the brokerage commission. July...
Popeye Inc. acquired 400,000 of the 500,000 outstanding common shares of Sailor Limited on July 1,...
Popeye Inc. acquired 400,000 of the 500,000 outstanding common shares of Sailor Limited on July 1, 2013, by issuing 510,000 of its own common shares with an estimated market value of $10 per share and paying cash of $100,000. On July 1, 2013, Sailor Limited’s financial statements included common shares of $3,000,000 and retained earnings of $2,050,000. All the company’s assets and liabilities were fairly valued except for the following: Carrying value Fair value Inventories $1,500,000 ...
On July 1, 2015 Allen Company acquired 70,000 of the outstanding shares of Brown Company for...
On July 1, 2015 Allen Company acquired 70,000 of the outstanding shares of Brown Company for $12 per share. This acquisition gave Allen a 40 percent ownership of Brown and allowed Allen to significantly influence the investee’s decision-making process. As of July 1, 2015, the investee had assets with a book value of $2 million and liabilities of $600,000. At the time, Brown held equipment appraised at $150,000 above book value; it had a six-year remaining life with no salvage...
Fashion Outfitters Income Statement In '000s 2015 350,000 370,000 411,000 235,000 246,000 270,000 115,000 124,000 141,000...
Fashion Outfitters Income Statement In '000s 2015 350,000 370,000 411,000 235,000 246,000 270,000 115,000 124,000 141,000 90,000 92,000 90,000 25,000 32,000 51,000 16,000 18,000 20,000 41,000 50,000 71,000 Results 2017 2016 Revenue Less: Cost of Goods Sold (COGS) Gross Profit Less: Selling, General & Administrative Operating Income Plus: Depreciation & Amortisation EBITDA EBIT Plus: Other Income (expense) Profit Before Tax Less: Taxes Net Profit for the Yea 25,000 32,000 51,000 9,000 19,000 16,000 44,000 51,000 67,000 5,000 26,000 29,000 19,000...
Question 3 (13 marks) Popeye Inc. acquired 400,000 of the 500,000 outstanding common shares of Sailor...
Question 3 (13 marks) Popeye Inc. acquired 400,000 of the 500,000 outstanding common shares of Sailor Limited on July 1, 2013, by issuing 510,000 of its own common shares with an estimated market value of $10 per share and paying cash of $100,000. On July 1, 2013, Sailor Limited’s financial statements included common shares of $3,000,000 and retained earnings of $2,050,000. All the company’s assets and liabilities were fairly valued except for the following: Carrying value Fair value...
The draft statement of financial position of Linfield Limited for the year ended 31 December 2016 are as below:...
The draft statement of financial position of Linfield Limited for the year ended 31 December 2016 are as below: Statement of financial position as at 31 December 2016 (with comparative figures) 2016 2015 Non-current assets Property, plant and equipment 35,750 281,000 Investment properties 7,000 7,500 Intangibles assets 6,000 6,200 49,250 294,200 Current assets Inventories 3,980 4,545 Trade receivables 7,410 9,075 Short-term investments 500 Cash and bank 7,555 13,650 26,105 20,610 14,810 375,355 Total assets Equity and reserves Share capital 54,500...
On January 1, 2016, Aspen Company acquired 80 percent of Birch Company's voting stock for $288,000. Birch reported a $300,000 book value and the fair value of the noncontrolling interest was $72,000 on that date. Then, on January 1, 2017, Birch acquired 8
On January 1, 2016, Aspen Company acquired 80 percent of Birch Company's voting stock for $288,000. Birch reported a $300,000 book value and the fair value of the noncontrolling interest was $72,000 on that date. Then, on January 1, 2017, Birch acquired 80 percent of Cedar Company for $104,000 when Cedar had a $100,000 book value and the 20 percent noncontrolling interest was valued at $26,000. In each acquisition, the subsidiary's excess acquisition-date fair over book value was assigned to...
Pitino acquired 90 percent of Brey's outstanding shares on January 1, 2016, in exchange for $396,000...
Pitino acquired 90 percent of Brey's outstanding shares on January 1, 2016, in exchange for $396,000 in cash. The subsidiary's stockholders' equity accounts totaled $380,000 and the noncontrolling interest had a fair value of $44,000 on that day. However, a building (with a ten-year remaining life) in Brey's accounting records was undervalued by $25,000. Pitino assigned the rest of the excess fair value over book value to Brey's patented technology (four-year remaining life). Brey reported net income from its own...
Pitino acquired 80 percent of Brey's outstanding shares on January 1, 2016, in exchange for $369,000...
Pitino acquired 80 percent of Brey's outstanding shares on January 1, 2016, in exchange for $369,000 in cash. The subsidiary's stockholders' equity accounts totaled $353,000 and the noncontrolling interest had a fair value of $92,250 on that day. However, a building (with a ten-year remaining life) in Brey's accounting records was undervalued by $19,000. Pitino assigned the rest of the excess fair value over book value to Brey's patented technology (five-year remaining life). Brey reported net income from its own...
Ewok Enterprises recently elected the fair value option to account for its investment in Yoda Inc. Ewok purchased the shares for $209,000 and the shares are currently trading for $195,000 at year-end. What is the amount of gain or loss reported at year-end for this investment and where is this gain or loss reported? O A. Unrealized Gain of $14,000, reported as part of Net Income. OB. Unrealized Gain of $14,000, reported as part of Other Comprehensive Income. O C....
er 15 Investments and Fair Value Accounting PR 15-3B Stock investment transactions, equity method and available-for-sale 03.3.4 securities Glacier Products Inc. is a wholesaler of rock climbing gear. The company began operations on January 1, 2016. The following transactions relate to securities acquired by Glacier Products Inc., which has a fiscal year ending on December 31: 2016 Jan. 18. Purchased 9,000 shares of Malmo Inc. as an available for sale investment at $40 per share, including the brokerage commission. July...
Fashion Outfitters Income Statement In '000s 2015 350,000 370,000 411,000 235,000 246,000 270,000 115,000 124,000 141,000 90,000 92,000 90,000 25,000 32,000 51,000 16,000 18,000 20,000 41,000 50,000 71,000 Results 2017 2016 Revenue Less: Cost of Goods Sold (COGS) Gross Profit Less: Selling, General & Administrative Operating Income Plus: Depreciation & Amortisation EBITDA EBIT Plus: Other Income (expense) Profit Before Tax Less: Taxes Net Profit for the Yea 25,000 32,000 51,000 9,000 19,000 16,000 44,000 51,000 67,000 5,000 26,000 29,000 19,000...
The draft statement of financial position of Linfield Limited for the year ended 31 December 2016 are as below: Statement of financial position as at 31 December 2016 (with comparative figures) 2016 2015 Non-current assets Property, plant and equipment 35,750 281,000 Investment properties 7,000 7,500 Intangibles assets 6,000 6,200 49,250 294,200 Current assets Inventories 3,980 4,545 Trade receivables 7,410 9,075 Short-term investments 500 Cash and bank 7,555 13,650 26,105 20,610 14,810 375,355 Total assets Equity and reserves Share capital 54,500...
Most questions answered within 3 hours.
-
A student studying for a vocabulary test knows the meanings of
16 words from a list...
asked 1 minute from now -
At an annual interest rate of 6%, which would you prefer; three
annual year-end cash flows...
asked 5 minutes ago -
Assuming air has a density of 1.17 g/L and .973 atm what is the
average molar...
asked 3 minutes ago -
1. (40’) In myStack.cpp, implement the member functions of the
class myStack, which is the class...
asked 5 minutes ago -
We have two Earths, one as ours and another that is twice
heavier than that of...
asked 6 minutes ago -
What do the phenomena of overshadowing, the CS preexposure
effect, and relative validity of cues have...
asked 10 minutes ago -
MnO4^- + C2O4^2- ---->MnO2 +CO3^2- balance in basic media
asked 24 minutes ago -
What is the missing keyword in the program below?
public class Batman {
public static int...
asked 20 minutes ago -
The Southern Oscillation can be best described
as
relative changes between two pressure systems.
variation in...
asked 22 minutes ago -
We predict that learning statistics will increase a student's
IQ. Those not learning statistics have a...
asked 27 minutes ago -
Write a procedure of how you would separate benzoic acid
(acidic), decane (neutral), and adenine (basic)...
asked 27 minutes ago -
1. What is the pH of 0.773M Sr(OH)2?
2. What is the pH of 0.0133M solution...
asked 36 minutes ago