Podcast
Questions and Answers
According to the statements provided, which one is correct regarding equity security holdings and non-trading equity investments?
According to the statements provided, which one is correct regarding equity security holdings and non-trading equity investments?
- Equity security holdings between 20 and 50 percent do not indicate a controlling interest, and non-trading equity investments are recorded at fair value with unrealized gains/losses in profit or loss.
- Equity security holdings below 20 percent indicate a controlling interest, and non-trading equity investments are recorded at historical cost.
- Equity security holdings above 50 percent indicate a controlling interest, and non-trading equity investments are recorded at fair value with unrealized gains/losses in profit or loss.
- Equity security holdings between 20 and 50 percent indicate a controlling interest, and non-trading equity investments are recorded at fair value with unrealized gains/losses in other comprehensive income. (correct)
Which of the following is NOT a direct attributable expenditure related to investment property?
Which of the following is NOT a direct attributable expenditure related to investment property?
- Abnormal amounts of wasted material and labor
- Property and transfer taxes
- Professional fees for legal services
- Start-up costs (correct)
If Pod Company's ending balance in the investment in Jobs, Inc. account was $320,000 after applying the equity method in 2019, and Jobs, Inc. reported net income of $420,000 and distributed dividends of $180,000, what was the purchase price Pod Company paid for its investment in Jobs, Inc.?
If Pod Company's ending balance in the investment in Jobs, Inc. account was $320,000 after applying the equity method in 2019, and Jobs, Inc. reported net income of $420,000 and distributed dividends of $180,000, what was the purchase price Pod Company paid for its investment in Jobs, Inc.?
- $470,000
- $380,000
- $170,000
- $260,000 (correct)
On July 1, 2017, Dreeben Company acquired 600, 10%, $1,000 bonds at 99 plus accrued interest. What does '99 plus accrued interest' mean?
On July 1, 2017, Dreeben Company acquired 600, 10%, $1,000 bonds at 99 plus accrued interest. What does '99 plus accrued interest' mean?
If an investor holds equity securities between 20% and 50% of an investee, what accounting method should be used to account for the investment?
If an investor holds equity securities between 20% and 50% of an investee, what accounting method should be used to account for the investment?
Which of the following is considered a direct attributable expenditure related to investment property?
Which of the following is considered a direct attributable expenditure related to investment property?
What is the amount that Dreeben paid for investments in bonds?
What is the amount that Dreeben paid for investments in bonds?
Which two statements best describe 'owner-occupied property' under PAS 40, Investment Property?
Which two statements best describe 'owner-occupied property' under PAS 40, Investment Property?
What is the cost of ending inventory under Average Method for ABC Corporation?
What is the cost of ending inventory under Average Method for ABC Corporation?
On December 31, 2019, what amount should be reported as investment in associate for Bliss Company?
On December 31, 2019, what amount should be reported as investment in associate for Bliss Company?
What should be the expense recognized in the profit or loss for the year ending December 31, 2020 under fair value and cost model for Lancer Company's investment property?
What should be the expense recognized in the profit or loss for the year ending December 31, 2020 under fair value and cost model for Lancer Company's investment property?
When did Wynn Inc. purchase as a short term investment?
When did Wynn Inc. purchase as a short term investment?
