On March 25, 2021, Phillips Corporation purchased bonds of Atlas Corporation for $132 million and classified the securities as trading securities. On December 31, 2021, these bonds were valued at $150 million. Three months later, on April 3, 2022, Phillips Corporation sold these bonds for $140 million. As part of the multistep approach to record the 2022 transaction, Phillips Corporation should first update the fair value adjustment by recording: Multiple Choice An unrealized holding gain of $28 million in 2022. An unrealized holding loss of $10 million in 2022. An unrealized holding gain of $8 million in 2022. A gain of $8 million in 2022.
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- During 2021, Anthony Company purchased debt securities as a long-term investment and classified them as trading. All securities were purchased at par value. Pertinent data are as follows: The net holding gain or loss included in Anthonys income statement for the year should be: a. 0 b. 3,000 gain c. 9,000 loss d. 12,000 lossOn February 18, 2018, Union Corporation purchased $1,139,000 of IBM bonds. Union will hold the bonds indefinitely, and may sell them if their increases sufficiently. On December 31, 2018, and December 31, 2019, the market value of the bonds was $1,105,000 and $1,156,000, respectfully. Prepare the adjusting entry for December 31, 2018 and 2019. The answer they have is: Dec 31,2018 Unrealized holding gain 34,000 Fair value adjustment 34,000 Dec 31,2019 Fair value adjustment 51,000 Unrealized holding gain 51,000 Please show me the calculation steps for the answer: $51,000. How do you get this number?On March 25, 2021, Phillips Corporation purchased bonds of Atlas Corporation for $160 million and classified the securities as trading securities. On December 31, 2021, these bonds were valued at $176 million. Three months later, on April 3, 2022, Phillips Corporation sold these bonds for $167 million. As part of the multistep approach to record the 2022 transaction, Phillips Corporation should first update the fair value adjustment by recording: An unrealized holding gain of $25 million in 2022. An unrealized holding loss of $9 million in 2022. An unrealized holding gain of $7 million in 2022. A gain of $7 million in 2022.
- During 2021, Lavida Loca Company purchased trading securities with the following cost and market value on December 31, 2021. Cost Market value A 300,000 400,000 B 1,500,000 1,700,000 C 3,800,000 3,900,000 The entity sold Investment C on January 10, 2022 for P 4,000,000 What is the unrealized gain or loss should be reported in the income statement for 2021? a. 100,000 gain b, 100,000 loss c. 400,000 gain d. 400,000 lossA company purchases debt securities for $100,000 at the beginning of 2022. It classifies as trading securities and $60,000 as AFS securities. It sells the securities in 2023. Required For each of the following scenarios, indicate the net effect on income and other comprehensive income in each year 2022 and 2023. In each case, any unrealized decline in value below cost is expected to be recovered and is attributed to market factors. a. Fair value, end of 2022 Selling price, 2023 Note: Use a negative sign with an answer to indicate the net effect amount decreases Income or OCI. OCI End of 2022 $ 2023 b. Trading securities AFS securities $38,000 $65,000 43,000 64,000 Income Fair value, end of 2022 Selling price, 2023 End of 2022 $ 2023 (2,000)✓ $ 9,000 ✓ Trading securities AFS securities $45,000 $56,000 42,000 68,000 Note: Use a negative sign with an answer to indicate the net effect amount decreases Income or OCI. OCI (4,000) ✔ 0 x 5,000 ✓ 0 x Income 5,000 $ 5,000 ✓A Company had various equity investments at fair value through profit or loss transactions during 2019 and 2020. The acquisition cost of all the securities in its portfolio during 2019 was P532,000. At December 31, 2019 and December 31, 2020, the market value of these equity investments were P541,000 and P512,000, respectively. In 2021, all of these securities were sold for P550,000.1. Assuming no other transactions are noted regarding these financial assets at fair value through profit or loss, what is the amount of unrealized gain/loss reported in 2020 income statement relating to these securities? a. P29,000 loss b. P20,000 loss c. P29,000 gain d. P20,000 gain 2. What is the gain on sale reported in A Company's 2021 income statement? a. P38,000 b. P18,000 c. P9,000 d. P0
- Can you help me to calculate adjusted net income, adjusted net income if FV of security B were 285,000, value of held for trading securities as of 12/31/2020 and assuming these securities at measured at FVOCI, calculate the value of these financial assets as of 12/31/2020 Problem: ABC Corporation buys and sells securities expecting to earn profits on short term differences in price. during 2020, ABC Corporation purchased the following held for trading securities. Security A: Cost- 195,000; FV at 12/31/2020- 225,000 Security B: Cost- 300,000; FV at 12/31/2020- 162,000 Security C: Cost- 678,000; FV at 12/31/2020- 660,000 Before any adjustments related to these securities, ABC Corporation had net income of 900,000On December 21, 2025, Pina Company provided you with the following information regarding its equity investments. Clemson Corp. stock Colorado Co.stock e Investments Buffaloes Co.stock Total of portfolio Previous fair value adjustment balance Fair value adjustment-Cr. TU December 31, 2025 2025 Cost $20,400 10,900 20,400 $51,700 Fair Value Adjustment Fair Value Account Titles and Explanation $19.300 Unrealized Holding Gain or Loss -Income 9,800 20,990 During 2026, Colorado Co. stock was sold for $10,350. The fair value of the stock on December 31, 2026, was Clemson Corp.stock- $19,390, Buffaloes Co. stock-$20,900. None of the equity investments result in significant influence. $50,090 Unrealized Gain (Loss) $(1,100) (1,100) 590 (List oll debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter O for the amounts.) (1,610) Prepare the…At December 31, 2025, Pharoah Company has a portfolio of equity securities valued at $136000. Its cost was $116000. If the Fair Value Adjustment has a debit balance of $7200, which of the following journal entries is required at December 31, 2025? O Unrealized Holding Gain or Loss-Income Fair Value Adjustment Fair Value Adjustment Unrealized Holding Gain or Loss-Income Fair Value Adjustment Unrealized Holding Gain or Loss-Income Unrealized Holding Gain or Loss-Income Fair Value Adjustment 12800 12800 20000 20000 12800 12800 20000 20000
- ABC Co. acquired equity securities on May 25, 2020. The acquisition did not result in significant influence over the investee company. The fair value of the investment at December 31, 2020 was $76,000 and $108,000 at December 31, 2021.The adjustment to the Fair Value Adjustment account at December 31, 2021 would be? a. $8,000 debit. b. $32,000 debit. c. $32,000 credit. d. $8,000 credit.At December 31, 2020, the available-for-sale debt portfolio for Novak Corp. is as follows. Securities Good Co. Bonds Home Co. Bonds Grand Inc. Debentures Cost (a) $28,800 31,700 36,700 97,200 Fair Value $26,600 Account Titles and Explanation 33,700 37,800 98,100 Unrealized Gain (Loss) $(2,200 ) 2,000 1,100 Before an adjusting entry on December 31, 2020, the fair value adjustment account contained a credit balance of $470. Novak Corp. reported net income of $80,100 for 2020. 900 Prepare the adjusting entry at December 31, 2020, to report the portfolio at fair value. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Debit CreditIn 2021, Cromwell Corporation purchased bonds of Oliver Company at par for $300,000 and classified the investment as available-for-sale. In 2022, the market value increased to $320,000. In 2023, the market value of the investment declined to $310,000, and the investment was sold for $310,000. Question Journal entries for 2023 would include: Debit to Bond Investment - AFS of $300,000 Debit to Fair Value Adjustment - AFS of $20,000 Debit to Gain on Sale of Bond Investment - AFS of $10,000 Debit to Unrealized Holding Gains and Losses - OCI for $20,000