In 2019, Josiah Company purchased nontrading equity in investments which are irrevocably designated at FVOCI: Purchased Price Transaction Cost Market Value on Dec. 31, 2019 Security A 1,500,000 120,000 1,800,000 Security B 2,200,000 190,000 3,000,000 Security C 3,500,000 250,000 4,000,000 On March 15, 2020, the entity sold Security A for 2,500,000.
In 2019, Josiah Company purchased nontrading equity in investments which are irrevocably designated at FVOCI: Purchased Price Transaction Cost Market Value on Dec. 31, 2019 Security A 1,500,000 120,000 1,800,000 Security B 2,200,000 190,000 3,000,000 Security C 3,500,000 250,000 4,000,000 On March 15, 2020, the entity sold Security A for 2,500,000.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter13: Investments And Long-term Receivables
Section: Chapter Questions
Problem 1MC
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In 2019, Josiah Company purchased nontrading equity in investments which are irrevocably designated at FVOCI:
Purchased Price Transaction Cost Market Value on Dec. 31, 2019
Security A 1,500,000 120,000 1,800,000
Security B 2,200,000 190,000 3,000,000
Security C 3,500,000 250,000 4,000,000
On March 15, 2020, the entity sold Security A for 2,500,000.
What amount of gain on sale should be received in the income statement for 2020?
Purchased Price Transaction Cost Market Value on Dec. 31, 2019
Security A 1,500,000 120,000 1,800,000
Security B 2,200,000 190,000 3,000,000
Security C 3,500,000 250,000 4,000,000
On March 15, 2020, the entity sold Security A for 2,500,000.
What amount of gain on sale should be received in the income statement for 2020?
choices
800,000
500,000
300,000
0
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