Assignment 23 - 4-22 - M12-1 C . D . A . B . A . D . B ....

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M12-1 C . MORE THAN 50 PERCENT OWNERSHIP D . BONDS HELD TO MATURITY A . LESS THAN 20 PERCENT OWNERSHIP B . AT LEAST 20% BUT NO MORE THAN 50% OWNERSHIP A . CURRENT MARKET VALUE D . ORIGINAL COST LESS AMORTIZATION OF PREMIUM/DISCOUNT B . ORIGINAL COST + INCOME OF INVESTEE LESS DIVIDENDS E12-1 July 1, 2007: Investment in bonds 10,000,000 Cash 10,000,000 December 31, 2007: Cash 500,000 Interest Revenue 500,000 E12-3 June 30, 2007: Investment in TS 200,000 Cash 200,000 December 31, 2007: Allowance to value at market - TS 40,000 Net Unrealized Gain – TS 40,000 December 31, 2008: Allowance to value at market – TS 70,000 Net Unrealized Gain – TS 70,000 December 31, 2009: Net Unrealized Loss – TS 60,000 Allowance to value at market – TS 60,000 February 14, 2010: Cash 220,000 Loss on Sale 30,000 Investment in TS 200,000 Allowance to value - TS 50,000 YEAR MARKET - COST = ALLOWANCE - UNADJ. = ADUJ 2007 $240,000 - $200,000 = +$40,000 - $0 = +$40,000 2008 310,000 - 200,000 = +110,000 - + 40,000 = +70,000 2009 250,000 - 200,000 = +50,000 - +110,000 = - 60,000
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Assignment 23 - 4-22 - M12-1 C . D . A . B . A . D . B ....

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