ORIE 350 Lecture 13 - ORIE 350 Lecture 12 Quaxo Available...

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Investment AFSS 270,000 55,000 215,000 Unrealised holding Loss 55,000 estment in equity affiliate 0,000,000 000,000 000,000 S: 348,000,000 ORIE 350 Lecture 12 Quaxo Available for Sale Sep 10, 2004 Investment(available for sale securities) 270,000 Cash 270,000 Oct 12 st , 2004 Cash 3,650 Investment income 3,650 Dec 31 st , 2004 Unrealised holding loss(SE) 55,000 AFSS(SE) 55,000 Jan 12, 2005 Cash 3,650 Investment income(TSE) 3,650 Jan 28 st , 2005 Cash 320,000 Investment AFSS 215,000 Unrealised holding loss 55,000 Gain on sale 50,000 Notes: 1. As an AFSS, we waited until sale to show an income statement gain Gain or loss represents difference between sale price and original price
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c. 3, 650 2. First insurance Trading securities -> different method Concept: Price changes show up immediately on inc. Statement Dec 8, 2004 Investment 200,000 Cash 200,000 Dec 31, 2005 Investment, Trading Security 20,000 Holding Gain(TSE) 20,000 Closing entry Dec 31, 2005 Holding Gain Trading Security(TSE) 20,000
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ORIE 350 Lecture 13 - ORIE 350 Lecture 12 Quaxo Available...

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