None Question:On September 18, 2024, CDE Company purchased 8,000 shares (9%) of Tesla, Inc. stock for $39 per share.The market value per share of Tesla's stock at December 31, 2024 was $44.On May 12, 2025, CDE Company sold 2,300 shares of its Tesla stock for $36 per share.The market value of Tesla's stock at December 31, 2025 was $31 per share.CDE Company sold 3,700 shares of its Tesla stock on July 19, 2026 for $42 per share.At December 31, 2026, the market value of the Tesla stock was $46 per share.Calculate the amount of the realized gain reported on CDE Company's 2026 income statement.

To calculate the realized gain for CDE Company's 2026 income statement based on the transactions…

Answered: Question: On September 18, 2024, CDE…

Financial Accounting

14th Edition

ISBN:9781305088436

Author:Carl Warren, Jim Reeve, Jonathan Duchac

Publisher:Carl Warren, Jim Reeve, Jonathan Duchac

Chapter15: Investments And Fair Value Accounting

Section: Chapter Questions

Problem 28E

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Hyde Corporations capital structure at December 31, 2018, was as follows: On July 2, 2019, Hyde issued a 10% stock dividend on its common stock and paid a cash dividend of 2.00 per share on its preferred stock. Net income for the year ended December 31, 2019, was 780,000. What should be Hydes 2019 basic earnings per share? a. 7.80 b. 7.09 c. 7.68 d. 6.73
On November 16, 2027, XYZ Company purchased 17,000 shares(representing 12%) of Company C stock for $13 per share.On August 23, 2028, XYZ Company sold 2,400 shares of theCompany C stock for $19 per share. The market value ofthe Company C stock at December 31, 2028 was $29 per share.XYZ Company sold 3,500 shares of the Company C stock onMarch 20, 2029 for $33 per share. At December 31, 2029,the market value of the Company C stock was $11 per share. Calculate the amount of the unrealized loss reported onXYZ Company's 2029 income statement. Do not enter youranswer with a minus sign in front of your number.
On April 15, 2023, Rizzo Inc. purchased 34,500 shares of Hernandez, Inc. for $22 per share (passive interest). During the year Rizzo Inc. sold 4,500 shares of Hernandez, Inc. for $25 per share. Rizzo Inc. started operations on January 1, 2023. At December 31, 2023 the market price of Hernandez, Inc.’s stock was $19 per share. What is the total amount of unrealized gain (loss) that Rizzo Inc. will report through its income statement for the year ended December 31, 2023 related to its investment in Hernandez, Inc. stock?
Case A: On January 1, 2021, your company purchased 60,000 shares of Freeze Company's $10 par common stock for $26 per share in cash plus paid $10,000 of broker's fees. On that date, Freeze Company's assets and liabilities had a book value equal to market value except for their building which had a market value which was $80,000 higher than its book value and had a 20-year remaining life. 2021 a. Purchased 60,000 shares of Freeze Company's $10 par common stock for $26 per share in cash plus paid $10,000 in broker's fees.. b. Received $30,000 in cash dividends. On December 31, 2021: 1. Freeze Company's stock had a market value of $25 per share. с. 2. Freeze Company reported net income of $400,000. 2022 d. Received a 10% stock dividend. On December 31, 2022: 1. Freeze Company's stock had a market value of $24 per share. е. 2. Freeze Company reported net income of $500,000. Assume the 60,000 shares you purchased represented 30% of the outstanding shares of Freeze Company so you were using…
On 1/1/2022, Titanic Company purchased 56,000 ordinary shares from Tiny Company. This purchase accounts for 25% of Tiny Company’s ordinary shares outstanding. Tiny Company has the following transactions. Tiny’s stock price per share 1/1/2022 $12.00 31/12/2022 $15.60 31/12/2023 $10.80 Tiny's reported net income (loss) 31/12/2022 $1,612,800 31/12/2023 ($1,452,800) Tiny announced and paid cash dividend 28/1/2023 $322,560 Instruction Prepare journal entries for Titanic Company in the year 2022 and 2023.
Problem 6: Swan Corporation acquired 10,000 Maid Company shares on February 5, 2021 at P50 which includes a P10 per share broker's fees and commissions. A P50,000 cash dividends were received from Maid Company on March 20, 2021. These dividends were declared on January 5 payable to shareholders as of February 10. Maid shares were split 2 for 1 on November 1. The shares were selling at P32 per share on December 31, 2021. The investments were designated as FVPL. 6.1 How much is initial carrying value of investment at date of acquisition? 6.2 How much should be recognized as dividend income? 6.3 Prepare the all the journal entries for the period ended 12/31/2021
36 On June 1, 2020, Ping Corp. purchased 10,000 of Pong’s 50,000 outstanding shares at a price of P6.00 per share. Pong had earnings of P3,000 per month during 2020 and paid dividends of P10,000 on March 1, 2020 and P12,500 on December 1, 2020. The fair value of Pong’s shares was P6.50 per share on December 31, 2020. Which statement is correct? Group of answer choices Assuming that the investment is FVTPL, the total effect on Ping’s profit or loss for the year ended December 31, 2020 is P2,500 After all closing entries for 2020 are completed, the effect of the increase in fair value on total shareholders' equity would be the same amount under the FVTOCI and FVTPL approaches. Assuming that the investment is an associate, the total effect on Ping’s profit or loss for the year ended December 31, 2020 is P3,600. Assuming that the investment is FVTOCI, the total effect on Ping’s profit or loss for the year ended December 31, 2020 is P7,500.
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ABC Co. purchased 10,000 shares (2% ownership) of DEF Co. on February 14, 2020. ABC Co. received a share dividend of 2,000 shares on April 30, 2020, when the market value per share was P35. DEF Co. paid a cash dividend of P2 per share on December 15, 2020. In its 2020 income statement, what amount should ABC Co. report as dividend income?
2 B Company had the following transactions: 2018 Aug-01 Purchased 1,000 shares of Star Company for P60,000. Oct-01 Purchased 8,000 shares of Star Company for P560,000. 2019 Jul-01 Purchased 6,000 shares of Star Company for P480,000. Aug-01 Sold 5,000 shares of Star Company for P500,000. Use FIFO. 2020 Feb-01 Received 50% stock dividend. Nov-01 Received stock rights to purchase one new share at P60 for every 5 rights tendered. On this date, the right is quoted at P10. Dec-01 Sold all stock rights at P15 per right. REQUIRED: Prepare a summary of the noncurrent investments in Star Company shares by block of acquisition stating the number of shares and total cost for each block.
During 2021 Blossom Company purchased 8700 shares of Nash Inc. for $17 per share. During the year Blossom Company sold 1850 shares of Nash, Inc. for $22 per share. At December 31, 2021 the market price of Nash, Inc.’s stock was $15 per share. What is the total amount of gain/(loss) that Blossom Company will report in its income statement for the year ended December 31, 2021 related to its investment in Nash, Inc. stock? $-8150 $-17400 $-4450 $9250

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