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 2 years agoRelated Solutions
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as a portfolio. Most individuals and institutions invest in a
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Consider the...
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field of finance. Just like stand-alone assets and securities,
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possibility that an investment portfolio will not generate the
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Analyzing portfolio risk and return involves the understanding
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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
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A comparative balance sheet for Pharoah Corporation is presented as follows. December 31 Assets 2020 2019...
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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.
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