The following information is available for a FVTOCI investment: Purchase price $400,000; Unrealized holding gain at the end of year 1 $5,000; Unrealized holding gain at the end of year 2 $6,000. Calculate the balance in the AOCI equity holding (loss) or gain account at the end of year 2 for reporting purposes. O Gain of $6,000 O Gain of $411,000 O Gain of $5,000 O Gain of $11,000
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- Problem 2. DOLE acquires an investment for P250,000. Transaction costs amount to P15,000. Journalize the initial measurement if the investment is classified as: a. Financial asset held for trading b. Held-to-maturity investments c. Available-for-sale assetsGiven below is the information on various sets of investments. Asset Holding Period Return (HPR) Holding Period (%) Unit Trust- ABP 28 3.5 years RK Share 17 1 year Real Estate 11 9 months MAR Bonds 19 2.8 years MNF Share -2 3 months Calculate the annualised holding period returns for each asset. Based on your calculation of annualised holding period returns in (i) above, which asset would be the best choice for investment? Why?Adjusting Fair Value Adjustment Account-Equity Investments Five separate scenarios of equity investment holdings, measured at FV-NI are as follows. Original Cost Scenario of Investment $6,000 6.000 6,000 6,000 6,000 1 2 3 4 5 Date 1. Dec. 31 Fair Value Adjustment-TS 2. Dec. 31 3. Dec. 31 Fair Value at Dec. 31, Prior Year For each of the five separate scenarios, record the adjustment to fair value required on December 31 of the current year. Assume that each investment was purchased in the prior year and that there were no purchases or sales related to the investment in the current year: 4. Dec. 31 5. Dec. 31 $6,000 6,300 5,1001 Account Name To record adjusting entry 7,200 4,920 To record adjusting entry. Fair Value Adjustment-Fair Value Option To record adjusting entry. To record adjusting entry. Fair Value at Dec. 31, Current Year $6,300 6,600 5,520 5,700 4,740 V V V V V V H V Dr. 300 0 0 0 0 0 D 0 0 0 Cr. 0x 300 x 0x 0x 0x T 0x 0x 0x 0x 0x ▶ C
- The capitalized Čost A of an asset is given by A= Ao t c(t) e-** dt %3D Where A is He onginal investment t is the time in years r3 the anneal interest rate Gn decimal form) compounded Coine ously, and A) is the annual Cast of mantenance Cin dollacs) a) Find the capitalized Cust of an asset for n=5 years when A = $ 140,000 c(t) = $ 12,000 t , T:.04. %3D Cost b) Find the capitalized cosp of an asset forever cit)= $12,000 t, r:.04. Ao = $ 140,000From the following information calculate the net asset values. (Round your answers to the nearest cent.) Current market value Current liabilities Number of NAV of fund investment shares outstanding $ 5,790,000 $ 890,000 400,000 a. b. 14,280.000 $ 900,000 960.000A Corporation provided the following information for the current year: Income from continuing operation 2,000,000Loss on credit risk of financial liability at FVPL 200,000Revaluation surplus 1,500,000Loss from discontinued operation 300,000Unrealized gain on financial asset – FVPL 900,000Net “remeasurement” gain on defined benefit plan during the year 400,000 Unrealized gain on equity investment – FVOCI 1,000,000Investment gain on debt investment – FVOCI 900,000Unrealized loss on future contract designated as a cashflow hedge 200,000Translation gain on foreign operation 300,000 [Q7]: Determine the total amount of (21) other comprehensive income and (22) comprehensive income for the current year.
- Use Table 8 to answer the next two questions. Assume the committed capital is $100, the management fee is 2.00%, and the carried interest is 20.00%. Year Called-down Paid in capital Mgmt Fees $26 $31 $21 $10 $12 2015 2016 2017 2018 2019 What is the carried interest in 2019? O $9.85 O $5.40 $9.12 4 O $11.20 Table 8 Operating NAV before Carried NAV after Results Distributions Interest Distributions Distributions -$14 $6 $11 $41 $46 $5 $10 हैReturns. What are the returns on the following investments, E ? ..... Original Cost of Investment Selling Price of Investment Distributions Investment Received Percent Return CD $800 $810 $0 % (Round to two decimal places.)classify the given items as (operating / investing / financing), share the correct classification with logical reasoning Loss on sale of asset 95780 dividend income 26000 interest income 35000 finance cost paid on debentures 12000 gain on sale of investment 45000 Depreciation on fixed assets 85000 Amortisation Expenses 110000
- A bicycle manufacturer Zelo Inc. currently produces 8,000 units a year and expects output levels to remain steady in the future. It buys chains from an outside supplier at a price of $25 a chain (starting from year one). This outsourcing does not incur any working capital or capital expenditures. The plant manager believes that it would be cheaper to make these chains rather than buy them. Direct in-house production costs are estimated to be only $20 per chain. The necessary machinery would cost $350,000 (at year 0) and would be obsolete after 10 years. This investment could be depreciated to zero for tax purposes using a 10-year straight-line depreciation schedule. The plant manager estimates that the operation would require additional working capital of $50,000 to be invested in year 0 and it is recoverable at the end of the 10 years. Assume that scrapping the machinery after 10 years has no cashflow impact. If the company pays tax at a rate of 30% and the opportunity cost of capital…Tom Alexander has an opportunity to purchase any of the investments shown in the following table, price single yr cash flow yr of receipt a$7,500 $14,615 6b$225 $1,514 21c$1,425 $4,472 11d$375 $16,972 41 . The purchase price, the amount of the single cash inflow, and its year of receipt are given for each investment. Which purchase recommendations would you make, assuming that Tom can earn 10% on his investments? The present value of Investment A is $ (Round to the nearest cent.) The present value of Investment B is $ (Round to the nearest cent.) The present value of Investment C is $ (Round to the nearest cent.) The present value of Investment D is $ (Round to the nearest cent.) Which…Identify how much should be included in thespecific accounts: a. Issued bonds with face value of P5,000,000 and fair value ofP5,100,000 to purchase equipment with a fair value ofP4,900,000. b. The old equipment has an original cost of P1,500,000,accumulated depreciation of P600,000, and fair value ofP1,000,000. The new equipment obtained throughexchange has a fair value of P1,200,000. The balance was settled with cash. The exchange will not affect the futurecashflows of the entity.