Chapter 24 facelo ver Cases The Official langui e the way of this in the allowing s haw d s D wor machine was five you and the sa w They wie waar Ca ted by Reception Recep Sale of Man 2. Fair use The time to da vod i identified in SFAS No. 157. Suppose a man tendowments in a widey including bond wed e r efter att and illiquidacked writies Corder where we are the o t her and character the inputs you dias Level I. Level 2 Led time in private equity flands qu a e curities 2.12 Effect of Valentin Method for Nementary Anete Balance Sheet and Income Statement A m Walmart quir olden lanary1.2016 for $100,000 cash On December 2016 Lundia S150,000. On December 2017, the market value of the 120.000 The firm 2015. for Sic h the land on December REOLERED l e of the dig for 2016 2017 e income indicate the effect on th 2018 dech of the following head us Valtion of the d i stances of the land (Approach ) TODO Open Excel 2.12 Effect of Valuation Method for Nonmonetary Asset on Balance Sheet and Income Statement Assume Walmart acquires a tract of land on January 1, 2016, for $100,000 cash On December 31, 2016, the current market value of the land is $150,000. On December 31, 2017, the current market value of the land is $120,000. The firm sells the land on December 31, 2018, for $180,000 cash. REQUIRED Ignore income taxes. Indicate the effect on the balance sheet and income statement of the preceding information for 2016, 2017, and 2018 under each of the following valuation methods (Parts a-c). a. Valuation of the land at acquisition cost until sale of the land (Approach 1) b. Valuation of the land at current market value and including market value changes each year in net income (Approach 2) 2016 2017 2018 Dr Cr Dr Cr Dr Cr Cash Land Gain on land Loss on land c. Valuation of the land at current market value but including unrealized gains and losses in accumulated other comprehensive income until sale of the land (Approach 3) 2016 2017 2018 D1 CDO DIC Cash Land Gain on sale of land Unrealized gain - OCI Unrealized loss - OCI 0 d. Why is retained earnings on December 31, 2018, equal to $80,000 in all three cases despite the reporting of different amounts of net income each year? Chapter 24 facelo ver Cases The Official langui e the way of this in the allowing s haw d s D wor machine was five you and the sa w They wie waar Ca ted by Reception Recep Sale of Man 2. Fair use The time to da vod i identified in SFAS No. 157. Suppose a man tendowments in a widey including bond wed e r efter att and illiquidacked writies Corder where we are the o t her and character the inputs you dias Level I. Level 2 Led time in private equity flands qu a e curities 2.12 Effect of Valentin Method for Nementary Anete Balance Sheet and Income Statement A m Walmart quir olden lanary1.2016 for $100,000 cash On December 2016 Lundia S150,000. On December 2017, the market value of the 120.000 The firm 2015. for Sic h the land on December REOLERED l e of the dig for 2016 2017 e income indicate the effect on th 2018 dech of the following head us Valtion of the d i stances of the land (Approach ) TODO Open Excel Chapter 24 facelo ver Cases The Official langui e the way of this in the allowing s haw d s D wor machine was five you and the sa w They wie waar Ca ted by Reception Recep Sale of Man 2. Fair use The time to da vod i identified in SFAS No. 157. Suppose a man tendowments in a widey including bond wed e r efter att and illiquidacked writies Corder where we are the o t her and character the inputs you dias Level I. Level 2 Led time in private equity flands qu a e curities 2.12 Effect of Valentin Method for Nementary Anete Balance Sheet and Income Statement A m Walmart quir olden lanary1.2016 for $100,000 cash On December 2016 Lundia S150,000. On December 2017, the market value of the 120.000 The firm 2015. for Sic h the land on December REOLERED l e of the dig for 2016 2017 e income indicate the effect on th 2018 dech of the following head us Valtion of the d i stances of the land (Approach ) TODO Open Excel 2.12 Effect of Valuation Method for Nonmonetary Asset on Balance Sheet and Income Statement Assume Walmart acquires a tract of land on January 1, 2016, for $100,000 cash On December 31, 2016, the current market value of the land is $150,000. On December 31, 2017, the current market value of the land is $120,000. The firm sells the land on December 31, 2018, for $180,000 cash. REQUIRED Ignore income taxes. Indicate the effect on the balance sheet and income statement of the preceding information for 2016, 2017, and 2018 under each of the following valuation methods (Parts a-c). a. Valuation of the land at acquisition cost until sale of the land (Approach 1) b. Valuation of the land at current market value and including market value changes each year in net income (Approach 2) 2016 2017 2018 Dr Cr Dr Cr Dr Cr Cash Land Gain on land Loss on land c. Valuation of the land at current market value but including unrealized gains and losses in accumulated other comprehensive income until sale of the land (Approach 3) 2016 2017 2018 D1 CDO DIC Cash Land Gain on sale of land Unrealized gain - OCI Unrealized loss - OCI 0 d. Why is retained earnings on December 31, 2018, equal to $80,000 in all three cases despite the reporting of different amounts of net income each year? Chapter 24 facelo ver Cases The Official langui e the way of this in the allowing s haw d s D wor machine was five you and the sa w They wie waar Ca ted by Reception Recep Sale of Man 2. Fair use The time to da vod i identified in SFAS No. 157. Suppose a man tendowments in a widey including bond wed e r efter att and illiquidacked writies Corder where we are the o t her and character the inputs you dias Level I. Level 2 Led time in private equity flands qu a e curities 2.12 Effect of Valentin Method for Nementary Anete Balance Sheet and Income Statement A m Walmart quir olden lanary1.2016 for $100,000 cash On December 2016 Lundia S150,000. On December 2017, the market value of the 120.000 The firm 2015. for Sic h the land on December REOLERED l e of the dig for 2016 2017 e income indicate the effect on th 2018 dech of the following head us Valtion of the d i stances of the land (Approach ) TODO Open Excel
