8) On July 1, 2022, Chester Aguilar acquires 1,000 shares of a foreign company at 10 Foreign Currency units (FC, hereafter) per share. He acquired the funds for this purchase when FC1- $1.48, a value that did not change prior to the date on which he purchased the shares. He sells the 1,000 shares December 1, 2022 for FC12 per share. On this date the exchange rate is FC1- $1.46. What is the effect of the sale transaction on Chester's net income for 20227 A) $2,520 B) $2,720 C) $1,360 D) $1,160
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- On January 3, 2021 A Company purchases a 15 percent interest in B Corporation's common stock for P50,000 cash. A company accounts for the investment using the cost method. B's net income for 2021 is P20,000, but it declares no dividends. In 2022 B's net income is P80,000, and it declares dividends of P120,000. What is the correct balance of A's investment in B account at December 31, 2022?On 1 January 2021, SR Bhd (SRB) purchases two quoted securities from the open market. The details of the purchases are as follows:Price (RM) Commission (RM) 1,000,000 ordinary shares of MA Bhd 2,500,000 10,000 1,000,000 bonds of ABB Bhd 1,000,000 5,000BSB intends to trade these investments and will sell them when their market price increases by about 10% or more. On 31 March 2021, the quoted market price of MA Bhd’s ordinary shares is RM2.10 and the market price of the bonds of ABB Bhd closes at 95 sen per unit. On 30 April 2021, the quoted market price of MA Bhd’s ordinary shares is RM2.80 and the market price of the bonds of ABB Bhd remain the same (closes at 95 sen per unit). SRB decided to sell all units of MA Bhd’s ordinary shares.Required:(i) explain how BSB shall account for the two quoted investments.(ii) provide the journal entries to record the above transactions.B, a United States Shareholder, acquires its 70% interest in foreign corporation F’s shares on March 15, 2022 (1/5 of year) from A, a non-resident alien who owned the stock since January 1, 2022. During the year, F earns $2000 of Subpart F income and has e&p of $2000. Before B’s acquisition of the shares, F distributed a dividend of $150 to A. How much Subpart F income should B reflect in 2022 from its ownership of the F shares?
- John bought 1,000 shares of Intel stock on October 18, 2018 for $30 per share plus a $750 commission he paid to his broker. On December 12, 2022, he sells the shares for $42.50 per share. He also incurs a $1,000 fee for this transaction. What is John’s adjusted basis in the 1,000 shares of Intel stock? What amount does John realize when he sells the 1,000 shares? What is the gain/loss for John on the sale of his Intel stock? What is the character of the gain/loss?G. Regine, Inc. owns 500 ordinary shares of Velasquez Company which has several hundred thousand shares publicly traded. These 500 shares were purchased by Regine in early part of 2021 for P200 per share. On August 20, 2021, Velasquez distributed 500 rights to Regine. Regine was entitled to buy one new share of Velasquez ordinary shares at P180 and two share rights. On September 1, 2021, when the market value of Velasquez ordinary share was P203, Regine exercised all the rights and received 250 ordinary shares. - How much is the investment income recognized by Regine Inc. upon exercise of the rights? A. P11,500 B. P5,750 C. P750 D. P0In October 2018, Ben and Jerry exchange investment realty in a § 1031 like-kind exchange. Ben bought his real estate in 2007 while Jerry purchased his in 2010. In addition to the realty, Ben receives Pearl, Inc. stock worth $10,000 from Jerry. Ben’s realized gain is $30,000. On what date does the holding period for Ben’s realty received from Jerry begin? When does the holding period for the stock he receives begin? 2007, 2018. 2007, 2007. 2010, 2010. 2010, 2018. None of the above.
- Mahan purchases 1,000 shares of Bluebird Corporation stock on October 3,2021 for $300,000. On December 12,2021, Mahan purchases an additional 750 shares of Bluebird stock for $210,000. According to market quotations, Bluebird stock is selling for $285 per share on December 31, 2021. Mahan sells 500 shares of Bluebird stock on March 1, 2022 for $162,500. What is the adjusted basis of Mahan’s Bluebird stock on December 31, 2021? What is Mahan’s recognized gain or loss from the sale of Bluebird stock on March 1, 2022, assuming that the shares sold are from the shares purchased on December 12, 2021? What is Mahan’s recognized gain or loss from the sale of Bluebird stock on March 1, 2022, assuming that Mahan cannot adequately identify the shares sold?John bought 2,100 shares of Intel stock on October 18, 2017, for $52 per share plus a $750 commission he paid to his broker. On December 12, 2021, he sells the shares for $75.50 per share. He also incurs a $1,000 fee for this transaction. a. What is John’s adjusted basis in the 2,100 shares of Intel stock? b. What amount does John realize when he sells the 2,100 shares? c. What is the gain/loss for John on the sale of his Intel stock? Gain?1. Macmod sold 2,000 shares of his investment in stock eCare. The sale is made through the Philippine Stock Exchange (PSE) tor P1,000,000. How much is the percentage tax if Macmod acquired the shares of stock for P800,000 2. Macmod sold 2,000 shares of his investment in stock eCare. The sale is made through the Philippine Stock Exchange (PSE) tor P1,000,000. How much is the percentage tax if Macmod acquired the shares of stock for P800,000
- On October 30, 2019, Tess bought 500 shares of ACTS stock for ₱ 640.00 per share. OnNovember 15, 2020, ACTS paid a ₱ 620.00 dividend per share, and on January 15, 2021,she sold the stock for ₱ 677.80 per share. Did Tess gain or lose on the investment? Howmuch money did she gain or lose in the investment?On july 16, 2021, Empe exchanged a land for 15,000 ordinary shares of RH corporation to be held for trading. On this date, the carrying amount of the land was P1,200,000 and the fair value was P1,650,000. On this date, the carrying amount of RH's share was P75 and the market value was P125. On October 17, 10,000 of these share were sold at P135. The market price at year end is P142. The entry made by your client with regards to the above investment upon acquisition was: DEBIT: Trading securities-RH-P1,200,000 CREDIT: Land-P1,200,000 Upon sale: DEBIT: Cash-P1,350,000 CREDIT: Trading securities-P1,350,000 What amount should be presented in the statement of financial position on December 31, 2021 for the investment related to RH? Compute the unrealized gain or loss that should be reported in the income statement at yearend. ( If loss, put a negative (-) sign before the numerical figure)For the last two years, Margaret Lane has Invested in the shares of Garod Inc. Details of her purchases and sales of these shares are as follows: Shares Purchased (Sold) Per Share Value January 2020 Purchase 300 $4.75 July 2020 Purchase 200 5.25 November 2020 Sale (250) 5.40 July 2021 Purchase 400 5.50 December 2021 Sale (150) 4.80 Determine Ms. Lane's taxable capital gains and allowable capital losses for 2020 and 2021.