How much is the unrealized gain (loss) recognized in Bumilis 2022 profit or loss?
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- On January 1, 2019, Kittson Company had a retained earnings balance of 218,600. It is subject to a 30% corporate income tax rate. During 2019, Kittson earned net income of 67,000, and the following events occurred: 1. Cash dividends of 3 per share on 4,000 shares of common stock were declared and paid. 2. A small stock dividend was declared and issued. The dividend consisted of 600 shares of 10 par common stock. On the date of declaration, the market price of the companys common stock was 36 per share. 3. The company recalled and retired 500 shares of 100 par preferred stock. The call price was 125 per share; the stock had originally been issued for 110 per share. 4. The company discovered that it had erroneously recorded depreciation expense of 45,000 in 2018 for both financial reporting and income tax reporting. The correct depreciation for 2018 should have been 20,000. This is considered a material error. Required: 1. Prepare journal entries to record Items 1 through 4. 2. Prepare Kittsons statement of retained earnings for the year ended December 31, 2019.On January 1, 2022, Bumili Co, purchased 10,000 shares of Nabill, Inc. for P1,000,000 Commission and other charges paid amounted to P15,000 Management made an irrevocable choice to subsequently measure the shares at fair value through other comprehensive income. On December 31, 2022, the shares are quoted at P90 per share. On January 3, 2023, all of the shares were sold at P105 per share. Commission and other charges paid for the sale amounted to P16.000, How much is the unrealized gain (loss) recognized in Bumilis 2022 profit or loss? A. P115,000 B. (P115,000) C. (P85,000) D. 0On January 1, 2021, AB Company purchased 15,000 shares of C Inc. for P25 per share. A total of P15,000 was incurred in relation to acquisition of these shares. These shares were acquired for short term fluctuation in profit. On July 31, 2021, 5,000 of these shares were sold at P30 per share. On October 31, 2021, a P4 per share dividend was declared to be distributed on January 31, 2022. And the remaining shares were quoted at P28 per share on December 31, 2021. How much is the total net amount reported in its profit or loss for the period ending December 31, 2021?
- On January 1, 2022, Bumili Co. purchased 10,000 shares of Nabili, Inc. for P1,000,000. Commission and other charges paid amounted to P15,000. Management made an irrevocable choice to subsequently measure the shares at fair value through other comprehensive income. On December 31, 2022, the shares are quoted at P90 per share. On January 3, 2023, all of the shares were sold at P105 per share. Commission and other charges paid for the sale amounted to P16,000. How much is the unrealized gain (loss) recognized in Bumili's 2022 profit or loss? P115,000 O (P115,000) O (P85,000) ZeroOn January 1, 2022, Bumili Co. purchased 10,000 shares of Nabili, Inc. for P1,000,000. Commission and other charges paid amounted to P15,000. Management made an irrevocable choice to subsequently measure the shares at fair value through other comprehensive income. On December 31, 2022, the shares are quoted at P90 per share. On January 3, 2023, all of the shares were sold at P105 per share. Commission and other charges paid for the sale amounted to P16,000. How much is the unrealized gain (loss) recognized in Bumili's 2022 profit or loss?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? O 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 O 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. O 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. O 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.
- On March 1, 2022, Dolor Company purchased 5,000 shares of Susan Incorporated paying P12 each share including P2 per share transaction cost. The shares were designated as financial asset through other comprehensive income. These shares are selling at P15 per share on December 31, 2022. How much is the amount of unrealized gain (loss) in comprehensive income for the period ending December 31, 2021?6. On January 1, 2020, PQR Company purchased 40,000 shares of Frank, Inc. at P100 per share. The investment is measured at fair value through other comprehensive income. Brokerage fees amounted to P120,000 were also paid by PQR. A P5 dividend per share was declared by Frank, Inc. on December 15, 2019, to be paid on March 31, 2020 to shareholders of record on January 31, 2020. What is the initial measurement of the investment in Frank, Inc.?On July 1, 2021, Matiyaga Company purchased 1,000 shares of Masipag Corp. P100 par ordinary shares (5% interest in voting rights) at P175 per share. Matiyaga also paid transaction cost of P3,500. The shares were designated as equity investments at fair value through other comprehensive income. On December 31, 2021, Masipag ordinary shares were quoted at P200 per share. What is the carrying value of Matiyaga’s equity investment at December 31, 2021? a.) P100,000 b.) P175,000 c.) P178,500 d.) P200,000
- During the year 2021, Pal Company purchased 1,000 shares of Pak Company ordinary shares at P150 per share, plus transaction costs of P4,000. The shares acquired are for trading purposes. At December 31, 2021, Pak ordinary shares are selling at P180/share. During the year 2022, Pal sold 400 shares at P195/share incurring P2,000 transaction costs on the sale. On December 31, 2022, the equity securities have fair value of P200/share.At what amount should the equity securities be reported at December 31, 2022? How much is the gain on sale of the 400 shares? What is the value of the equity investment at December 31, 2021?During the year 2021, Pal Company purchased 1,000 shares of Pak Company ordinary shares at P150 per share, plus transaction costs of P4,000. The shares acquired are for trading purposes. At December 31, 2021, Pak ordinary shares are selling at P180/share. During the year 2022, Pal sold 400 shares at P195/share incurring P2,000 transaction costs on the sale. On December 31, 2022, the equity securities have fair value of P200/share.At what amount should the equity securities be reported at December 31, 2022?