During 2019 Adamia Company purchased marketable equity securities for 370000 to

During 2019 adamia company purchased marketable

This preview shows page 3 - 5 out of 5 pages.

17.During 2019, Adamia Company purchased marketable equity securities for 370,000 to be held astrading investments. In 2019, the entity appropriately reported an unrealized loss o f40,000 in the income statement. There was no change during 2019 in the composition of the portfolio of trading securities. Pertinent data on December 31, 2020 are as follows:SecurityCostMarketA120,000140,000B90,00080,000C160,000180,000What amount of unrealized gain on these securities should be included in the 2020 income statement? a.70,000b. 30,000c. 110,000d. zero
Image of page 3
18.At the beginning of current year, Elusive company acquired an equity instrument for 800,000 to be measured at fair value through other comprehensive income. The entity incurred direct acquisition cost of 140,000.At year end, the fair value of the instrument was 1,100,000 and the transaction cost that would be incurred on the sale of the investment were estimated at 120,000.What amount of unrealized gain should be recognized in other comprehensive income for the current year? 19.Juday company acquired an equity investment a number of years ago for 600,000 and classified it as at fair value through other comprehensive income. On December 31, 2019, the cumulative loss recognized in other comprehensive income was 80,000 and the carrying amount of the investment was 520,000.On December 31, 2020, the issuer of the equity instrument was in severe financial difficulty and the fair value of the equity investment had fallen to 240,000What cumulative amount of unrealized loss should be reported as component of other comprehensive income in the statement of changes in equity for the year ended December 31, 2020?
Image of page 4
Image of page 5

You've reached the end of your free preview.

Want to read all 5 pages?

  • Fall '14
  • Generally Accepted Accounting Principles

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture