Question
In: Accounting
Pharoah Company's equity securities portfolio which is appropriately included in current assets is as follows:
Pharoah Company's equity securities portfolio which is
appropriately included in current assets is as follows:
| December 31, 2018 | ||||||
|---|---|---|---|---|---|---|
| Cost | Fair Value | Unrealized Gain (Loss) | ||||
| Catlett Corp. | $180000 | $151000 | $-29000 | |||
| Lyman, Inc. | 173000 | 185000 | 12000 | |||
$353000 | $336000 | $-17000 | ||||
Ignoring income taxes, what amount should be reported as a charge
against income in Pharoah's 2018 income statement if 2018 is
Pharoah's first year of operation?
Solutions
Expert Solution
| Net unrealized loss is $17000 |
| The amount to be reported as a charge against income in Pharoah's 2018 income statement is $17000 loss |
ekkarill92 answered 3 years agoRelated Solutions
A collection of financial assets and securities is referred to as a portfolio. Most individuals and...
A collection of financial assets and securities is referred to
as a portfolio. Most individuals and institutions invest in a
portfolio, making portfolio risk analysis an integral part of the
field of finance. Just like stand-alone assets and securities,
portfolios are also exposed to risk. Portfolio risk refers to the
possibility that an investment portfolio will not generate the
investor’s expected rate of return.
Analyzing portfolio risk and return involves the understanding
of expected returns from a portfolio.
Consider the...
A collection of financial assets and securities is referred to as a portfolio. Most individuals and...
A collection of financial assets and securities is referred to
as a portfolio. Most individuals and institutions invest in a
portfolio, making portfolio risk analysis an integral part of the
field of finance. Just like stand-alone assets and securities,
portfolios are also exposed to risk. Portfolio risk refers to the
possibility that an investment portfolio will not generate the
investor’s expected rate of return.
Analyzing portfolio risk and return involves the understanding
of expected returns from a portfolio.
Consider the...
At December 31, 2020, the available-for-sale debt portfolio for Pharoah, Inc. is as follows. Security Cost...
At December 31, 2020, the available-for-sale debt portfolio for
Pharoah, Inc. is as follows.
Security
Cost
Fair Value
Unrealized
Gain (Loss)
A
$23,625
$20,250
$(3,375
)
B
16,875
18,900
2,025
C
31,050
34,425
3,375
Total
$71,550
$73,575
2,025
Previous fair value adjustment balance—Dr.
540
Fair value adjustment—Dr.
$1,485
On January 20, 2021, Pharoah, Inc. sold security A for $20,385. The
sale proceeds are net of brokerage fees.
Prepare the adjusting entry at December 31, 2020, to report the
portfolio at...
Which statement regarding investments in equity securities is incorrect? A. Investments in equity securities are classified...
Which statement regarding investments in equity securities is
incorrect? A. Investments in equity securities are classified into
three specific types based on the investor's level of influence
over the investee company. B. Generally, no significant influence
exists if there is an ownership interest of less than 20% of the
investee's voting stock. C. Significant influence equity
investments are consolidated into the investor's financial
statements. D. Significant influence equity investments are always
reported as long-term assets on the balance sheet.
A comparative balance sheet for Pharoah Corporation is presented as follows. December 31 Assets 2020 2019...
A comparative balance sheet for Pharoah Corporation is presented
as follows.
December 31
Assets
2020
2019
Cash
$ 72,800
$ 22,000
Accounts receivable
83,260
67,460
Inventory
181,260
190,460
Land
72,260
111,460
Equipment
261,260
201,460
Accumulated Depreciation-Equipment
(70,260
)
(43,460
)
Total
$600,580
$549,380
Liabilities and Stockholders' Equity
Accounts payable
$ 35,260
$ 48,460
Bonds payable
150,000
200,000
Common stock ($1 par)
214,000
164,000
Retained earnings
201,320
136,920
Total
$600,580
$549,380
Additional information:
1.
Net income for 2020 was $127,520. No...
Portfolio expected return and risk A collection of financial assets and securities is referred to as...
Portfolio expected return and risk
A collection of financial assets and securities is referred to
as a portfolio. Most individuals and institutions invest in a
portfolio, making portfolio risk analysis an integral part of
finance. Just like standalone assets and securities, portfolios are
also exposed to risk. Portfolio risk refers to the possibility that
an investment portfolio will not generate the expected rate of
return.
Analyzing portfolio risk and return involves the understanding
of expected returns from a portfolio.
Consider...
If you want to optimize your portfolio of risky securities, which portfolio is the ideal portfolio?...
If
you want to optimize your portfolio of risky securities, which
portfolio is the ideal portfolio?
a) the portfolio that is tangent to the CAL
b) The portfolio that is furthest to the right in the
return/standard deviation space
c) the minumum variance portfolio
d) the portfolio that offers the highest return
The balance sheet for Bank A is as follows: *Assets/Liabilities and Asset/Liability Rates Included* Assets Floating...
The balance sheet for Bank A is as follows:
*Assets/Liabilities and Asset/Liability Rates Included*
Assets
Floating Rate: $700 @ 7%
Fixed Rate: $350 @ 10%
Non-Earning: $150
Liabilities
Floating Rate: $600 @ 5%
Fixed Rate: $420 @ 6%
Equity
$180
A) What is the repricing gap?
B) Calculate the net interest income.
C) Calculate the net interest margin.
D) If rates go up by 50 basis points, was the bank hedged
accurately in anticipation of the rate change? Why or...
Current interest rates for Treasury securities of different maturities are as follows:
Current interest rates for Treasury securities of different
maturities are as follows:1-year: 1.50%2-year: 2.25%3-year: 3.25%Assuming the liquidity premium theory is correct, what did
investors think the interest rate would be on the one-year Treasury
bill in two years if the term premium on a two-year Treasury note
is 0.15% and the term premium on a three-year Treasury note is
0.25%?
Assume a portfolio of assets is made up of two securities, security A and security B....
Assume a portfolio of assets is made up of two securities,
security A and security B. An amount of investment of GHS12,000 is
made in security A and GHS8000 is made in security B. The return
for security A is 30% and the return for security B is 20%. The
standard deviation for security A is 15% whilst the standard
deviation of security B is 10%. The correlation of return of
security A and return of security B is given...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Two cannons are mounted as shown in the drawing and rigged to fire simultaneously. They are...
- What is the potential of a cell made up of Zn|Zn2+ and Cu|Cu2+ half-cells at 25o...
- Write a Java Program using the following instruction: Create the following 3 methods that calculate and...
- How would the S/D curves shift if a $3 tax was imposed on suppliers for each...
- Why should a time-based authentication system invalidate the current password on a successful authentication?
- Explain the difference between a market penetration strategy and a market development strategy.
- QUESTION 4 Discuss the sanctity of life versus the quality of life debate as presented by...
ADVERTISEMENT