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Final 3.docx - Let’s Analyze PROBLEM 23 Investment as...

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Let’s AnalyzePROBLEM 23Investment as trading securityApril 1,2020Investment-TS 1,960,000Interest Income 40,000Cash 2,000,000August 1,2020Cash 80,000Interest Income 80,000Dec 31, 2020Cash 100,000Interest income 100,000Investment-TS 90,000Unrealized gain-TS 90,000PV as of Dec 31,2020 = 2,050,000Less: Carrying value = 1,960,000Unrealized gain- TS= 90,000Feb 1,2021Cash 20,000Interest income 20,000August 1, 2021Cash 140,000Interest income 140,000Dec 31, 2021Cash 100,000Interest income 100,000Investment-TS 35,875Unrealized gain-TS 35,875PV as of Dec 31,2021 = 2,085,875Less: Carrying value = 2,050,000Unrealized gain-TS = 35,875Feb 1, 2022Cash 20,000Interest income 20,000August 1, 2022Cash 140,000Interest income 140,000
Dec 31, 2022Cash 100,000Interest income100,000Unrealized loss-TS 20,875Investment-TS 20,875PV as of Dec 31,2021 = 2,065,000Less: Carrying value = 2,085,875Unrealized loss-TS = 20,875Feb 1, 2023Cash 20,000Interest income 20,000Cash 1,027,500Loss on Sale 5,000Investment-TS 1,032,5001,000,000 x 103.25% = 1,032,500Investment at FVTOCIApril 1,2020Investment-OCI 1,960,000Interest Income 40,000Cash 2,000,000August 1,2020Cash 80,000Interest income 80,000Dec 31, 2020Cash100,000Interest income100,000Investment-OCI- 90,000Unrealized gain-OCI 90,000PV as of Dec 31,2020 = 2,050,000Less: Carrying value = 1,960,000Unrealized gain- TS= 90,000Feb 1, 2021Cash 20,000Interest income20,000August 1, 2021Cash 140,000Interest income140,000Dec 31, 2021
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1966, 1944, fvtoci, 103 25

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