B Ltd purchased stock on 30 October 2022 for R138 000 (including VAT). Handling costs of R6 500 (excluding VAT) and transportation costs of R4 025 (including VAT) were incurred? What will be the COST PRICE of the stock for taxation purposes? OA. R148 525 O B. R130 000 OC. R138 000
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- During 2021, Lavida Loca Company purchased trading securities with the following cost and market value on December 31, 2021. Cost Market value A 300,000 400,000 B 1,500,000 1,700,000 C 3,800,000 3,900,000 The entity sold Investment C on January 10, 2022 for P 4,000,000 What is the unrealized gain or loss should be reported in the income statement for 2021? a. 100,000 gain b, 100,000 loss c. 400,000 gain d. 400,000 lossThe following is an extract from the trial balance of Tempo Ltd on 30 June 2022: Land and buildings 114000Equipment 210000Investment (80 000 shares of £1 each in Rhythm Ltd at cost price) 650000 Inventory (30/6/2008 - £382 000) 418000Trade receivables (30/6/2021 – £180 000) 206000Cash and cash equivalents 92000 Share capital: Ordinary share capital including premium 450000Preference share capital 200000 Retained earnings: Balance – beginning of year…During 2022, Merry Co. purchased the following shares which it classified as FVPL investment: Shares No. of Shares Cost per share at the time of purchase Fair value per share on December 31, 2022 A 1,000 P100 P80 B 5,000 P20 P25 C 10,000 P4 P5 How much unrealized gain or loss will be recognized in the Profit or Loss Statement for these investments on December 31, 2022?
- During 2021, Manu Company purchased shares of stock classified as short-term investment to be measured at fair value through other comprehensive income. The cost and fair value on December 31, 2021 were as follows: Security No. of Shares Cost Fair Value A 1,000 300,000 350,000 B 10,000 1,700,000 1,550,000 C 20,000 3,150,000 2,950,000 How much is the unrealized gain or loss to be recognized in other comprehensive income during 2021 for this investment?During 2022, Merry Co. purchased the following shares which it classified as FVPL investment: Shares No. of Shares Cost per share at the time of purchase Fair value per share on December 31, 2022 A 1,000 P100 P80 B 5,000 P20 P25 C 10,000 P4 P5 What is the value of the FVPL investment on December 31, 2022?During 2022, ABC Corp. acquired 500 shares of XYZ stock at P30 per share. ABC accounted for the stock as FVOCI financial assets. The market price per share of ABC's stock as of December 31, 2022 and 2023. is P22.50 and P39.50, respectively. US sa fes 1. How much-unrealized gain or loss on long-term investments should ABC report on its December 31, 2022, statement of comprehensive income? Use negative sign for the unrealized rences orations loss 2.How much unrealized gain.orloss on long-term investments should ABC report on its December 31, 2022, stockholders equity? Use negative sign for the unrealized loss 3. How much-unrcalized gain or loss on long-term investments should ABC report on its December 31. 2023. statement of comprehensive income? Use negative sign for the unrealized loss 4. How much-unrealized gain or loss on long term investments should ABC report on its December 31, 2023, stockholders equity? Use negative sign for the unrealized loss
- Paul Company presented the following information pertaining to its investments in equity securities. FVPL FVOCICost P1,000,000 P1,000,000Market value December 31, 2020 1,050,000 980,000 December 31, 2019 950,000 920,0001. What amount should Paul Company report as unrealized gain on its 2020 profit or loss? a. P160,000 b. P110,000 c. P100,000 d. P 50,000 2.What amount should Paul report as unrealized gains/losses in the shareholders' equity of its December 31, 2020 statement of financial position? a. P60,000 credit b. P20,000 debit c. P80,000 debit d. P20,000 creditBlue Horizon pty Ltd, a resident company that was formed in 2009, has a 31 March financial year-end. The company distributed the following amounts/assets to its sole shareholder, Mr. Asmal, on 1 December 2022: - A cash distribution of R1 100 000; - An in specie distribution of trading stock with a market value of R600 000 (trading stock was acquired on 1 April 2022 at a cost price of R400 000); and - An in specie distribution of a building with a market value of R1 600 000 (the building was acquired on 15 June 2015 for R1 200 000 - the building did not qualify for any capital allowances) - The applicable company tax rate and dividend tax rate is 28% and 20% respectively. REQUIRED: 1 Calculate the normal tax consequences arising from the above distributions for Blue Horizon pty Ltd’s 2023 year of assessment. 2 Calculate the amount of dividends tax that Blue Horizon Ltd. is liable for.Additional information: * All purchases of inventories are on credit * The selling and administrative expenses include depreciation of R320 000 * Property, plant and equipment were purchased during the year but there were no disposals * The total dividends for the year ended 31 December 2021 amounted to R360 000 * The issued share capital consisted of 100 000 ordinary shares * The market price of the shares on 31 December 2021 was R35
- Presented below is information related to the purchases of common stock by Bridgeport Company during 2025. Fair Value (at December 31) $68,000 306,000 194,000 $568,000 Investment in Arroyo Company stock Investment in Lee Corporation stock Investment in Woods Inc. stock Total (a) (b) Cost (at purchase date) $90,000 252,000 (Assume a zero balance for any Fair Value Adjustment account at the beginning of 2025.) 184,000 (b) $526,000 What entry would Bridgeport make at December 31, 2025, to record the investment in Arroyo Company stock if it chooses to report this security using the fair value option? No. Account Titles and Explanation (a) What entry would Bridgeport make at December 31, 2025, to record the investments in the Lee and Woods corporations, assuming that Bridgeport did not select the fair value option for these investments? (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry…Asda Ltd purchased shares of Simon plc. As of 30 June 2019, E50,000 was the Equity-Paid up Capital. Below are the key details: Acquired 10,000 shares on 30h June 2019 at £5 Fair Value of Shares on 30th June 2020 was £8 Fair Value of Shares on 30thJune 2021 was £7 All Shares were Sold on 30h June 2021. Tax Rate is 20%. You are required to Prepare Statement of Comprehensive Income and Statement of Changes in Equity (Both Extracts) for the Year ending 30th June 2021. Also show the Calculation of Gains.During 2020, Carpenters Corporation purchased equity securities and carried them at fair value through other comprehensive income. Pertinent data follow:Earth Ordinary Wind Ordinary Fire OrdinaryCost P36,000 P80,000 P180,000Market value. 12/31/20 40,000 60,000 186,000 The unearned loss reported in Carpenter's 2015 profit or loss is: A. P0B. P6,000C. P10,000