Investment as trading securities

Assignment Help Accounting Basics
Reference no: EM13146064

Goofy Inc. bought 15,000 shares of crazy co.'s stock for $150,000 on May 5, 2008, and classified the stock as available for sale. The market value of the stock declined to $118,000 by December 31,2008. Goofy reclassified this investment as trading securities in December of 2009 when the market value had risen to $125,000. What effect on 2009 income should be reported by Goofy for the Crazy Co. Shares?

Reference no: EM13146064

Questions Cloud

Explain experimental or a correlation study : The researcher then records the level of activity for each child during a 30 minute session on the playground. Is this an experimental or a correlation study? Explain your answer.
Correct piece of the journal entry : At the time of issuance, the market interest rate for similar financial instruments is 10%. Which of the following is a correct piece of the journal entry on September 1, 2010?
Discuss it from many different perspectives : Perspectives for Keiretsus could be: from the point of view of the Japanese economy, benefits and risks, from the perspective of the companies, from the perspectives of the employees, etc. Be creative, don't take the easy path.
What are specific names for efferent and afferent nerves : What are the specific names for the efferent and afferent nerves, receptors, effectors, and integration centers for the patellar reflex.
Investment as trading securities : Goofy reclassified this investment as trading securities in December of 2009 when the market value had risen to $125,000. What effect on 2009 income should be reported by Goofy for the Crazy Co. Shares?
Explain how the difference simply may be sampling error : The researcher will then compare the scores for the two treatments. If there is a difference between the two groups of scores. Briefly explain how the difference simply may be sampling error.
Calculate the total volume of gas : Calculate the total volume of gas (at 133 degrees C and 758 mmHg) produced by the complete decomposition of 1.56 kg of ammonium nitrate.
How much time would expected to wait to border control : How much time would you expect to wait to clear Border Control if you are the very first passenger from the 6:50am flight on the queue? Please note that the waiting time depends on your passport issue country.
Dissenting opinions expressed concern about the door : Identify two reported cases that have impacted the evidentiary process or analysis in digital forensic cases; will cite the case and summarize the issue before the court

Reviews

Write a Review

 

Accounting Basics Questions & Answers

  Investment related to transfers

Sarah and Emily form Red Corporation with the following investments: Sarah transfers computers worth $200,000 (basis of $80,000), while Emily transfers real estate worth $180,000 (basis of $40,000) and services (worth $20,000) rendered in organizi..

  What amount of warranty expense will appear

What amount will be reported in the Estimated Warranty Liability account on the December 31, 2011 balance sheet?

  Record sales and collections during the period

Prepare the entries to record sales and collections during the period. Prepare the entry to record the write-off of uncollectible accounts during the period. Prepare the entries to record the recovery of the uncollectible account during the period.

  Unit contribution margin problem

If fixed costs are $561,000 and the unit contribution margin is $8.00, what is the break-even point in units if variable costs are decreased by $.50 a unit?

  Compute the cost of the ending inventory

Compute the cost of the ending inventory and the cost of goods sold under (1) FIFO, (2) LIFO and (3) average-cost.

  What is the earnings conservatism ratio

1. what are the permanent and temporary differences? 2. What is NOL? Why does it occur? 3. What are the allocation methods? 4. What are the deferred tax assets and deferred tax liability? 5. What is the earnings conservatism ratio?

  Making the bank reconciliation

Prepare the bank reconciliation for Janus Jutes, Inc. dated May 31, 2009. Janus made a deposit on May 31, but this deposit did not appear on the bank statement, $1,451.

  Identify the balance-related audit objective

Several accounts receivable in the accounts receivable master file are not included in the aged trial balance.

  What expense should be recorded for 2012 as a result

A company buys an oil rig for $2,000,000 on January 1, 2012. The life of the rig is 10 years and the expected cost to dismantle the rig at the end of 10 years is $400,000 (present value at 10% is $154,220). 10% is an appropriate interest rate for ..

  Trust fund sold investments in securities

A private-purpose trust fund sold investments in securities having a carrying value of $23,000 for $26,000, resulting in a $3,000 gain on the change in value. If there are no trust provisions to the contrary, the gain is generally??

  Monthly net operating income or loss

If the president is right, what will be the effect on the company's monthly net operating income or loss? Using the incremental approach in perparing the answer?

  What happens to the value of money if prices in general fall

What is the basic relationship between interest rates and bond prices, and why does the relationship exist?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd