Cullumber Company's equity securities portfolio which is appropriately included in current assets is as follows:Catlett Corp.Lyman, Inc.OO $-7440.O $-20400.O $0.O $-130740.December 31, 2021CostO $23000 loss.O $14000 loss.- $0.O $9000 gain.$150000Cash$296000146000CashIgnoring income taxes, what amount should be reported as a charge against income in Cullumber's 2021 income statement if 2021 isCullumber's first year of operation?Debt InvestmentsPremium on BondsCashCurrent Attempt in ProgressSunland Company purchased $2700000 of 9%, 5-year bonds from Cheyenne, Inc. on January 1, 2021, with interest payable on July 1and January 1. The bonds sold for $2830740 at an effective interest rate of 8%. Using the effective-interest method, SunlandCompany decreased the Available-for-Sale Debt Securities account for the Cheyenne, Inc. bonds on July 1, 2021 and December 31,2021 by the amortized premiums of $10020 and $10380, respectively.Debt InvestmentsEair Value$127000At April 1, 2022, Sunland Company sold the Cheyenne bonds for $2790000. After accruing for interest, the carrying value of theCheyenne bonds on April 1, 2022 was $2797440. Assuming Sunland Company has a portfolio of Available-for-Sale Debt Securities,what should Sunland Company report as a gain or loss on the bonds?155000$282000Debt InvestmentsInterest RevenueOn August 1, 2021, Pharoah Company acquired $420000 face value 10% bonds of Kasnic Corporation at 104 plus accrued interest.The bonds were dated May 1, 2021, and mature on April 30, 2026, with interest payable each October 31 and April 30. The bonds willbe held to maturity. What entry should Pharoah make to record the purchase of the bonds on August 1, 2021?420000UnrealizedGain (Loss)$-23000273004473009000$-1400043680010500b4473004473004447300 ODebt InvestmentsPremium on BondsDebt InvestmentsCashDebt InvestmentsInterest RevenueCashDebt InvestmentsBCashCInterest RevenueCashSecurity CostA$13040017000028640042000027300447300O $1000 gain.O $24400 loss.O $38800 loss.O $25400 loss.43680010500447300Current Attempt in ProgressOn December 31, 2020, Sandhill Company purchased debt securities as trading securities. Pertinent data are as follows:Fair ValueAt 12/31/21$117000184400b26100044730044730044730010500436800On December 31, 2021, Sandhill transferred its investment in security C from trading to available-for-sale because Sandhill intends toretain security C as a long-term investment. What total amount of gain or loss on its securities should be included in Sandhill's incomestatement for the year ended December 31, 2021?

Lets understand the basics. When equity instrument is purchased then at the end of year, it needs to…

Cullumber Company's equity securities portfolio which is appropriately included in current assets is as follows: Catlett Corp. Lyman, Inc. December 31, 2021 Cost $150000 146000 $296000 $23000 loss. O $14000 loss. O $0. O $9000 gain. Fair Value $127000 155000 $282000 Unrealized Gain (Loss) $-23000 9000 $-14000 Ignoring income taxes, what amount should be reported as a charge against income in Cullumber's 2021 income statement if 2021 is Cullumber's first year of operation?

Cullumber Company's equity securities portfolio which is appropriately included in current assets is as follows: Catlett Corp. Lyman, Inc. December 31, 2021 Cost $150000 146000 $296000 $23000 loss. O $14000 loss. O $0. O $9000 gain. Fair Value $127000 155000 $282000 Unrealized Gain (Loss) $-23000 9000 $-14000 Ignoring income taxes, what amount should be reported as a charge against income in Cullumber's 2021 income statement if 2021 is Cullumber's first year of operation?

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 2MC: During 2021, Anthony Company purchased debt securities as a long-term investment and classified them...

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