Feherty, Incorporated accounts for its investments under IFRS No. 9 and purchased the following investments during...
Fantastic news! We've Found the answer you've been seeking!
Question:
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/05/665171784f62d_49566517177a7184.jpg)
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/05/6651717923b82_496665171789caa8.jpg)
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/05/66517179dcad2_4976651717952236.jpg)
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/05/6651717ab47f2_4986651717a26e7c.jpg)
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/05/6651717b4a586_4996651717b05427.jpg)
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/05/6651717c236a9_4996651717b8d2e0.jpg)
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/05/6651717d042ba_5006651717c63f9c.jpg)
Transcribed Image Text:
Feherty, Incorporated accounts for its investments under IFRS No. 9 and purchased the following investments during December 2024: 1. Fifty of Donald Company's $1,000 bonds. The bonds pay semiannual interest, return principal in eight years, and include no other cash flows or other features. Feherty plans to hold 10 of the bonds to collect contractual cash flows over the life of the investment and to hold 40, both to collect contractual cash flows but also to sell them if their price appreciates sufficiently. Subsequent to Feherty's purchase of the bonds, but prior to December 31, the fair value of the bonds increased to $1,040 per bond, and Feherty sold 10 of the 40 bonds. Feherty also sold 5 of the 10 bonds it had planned to hold to collect contractual cash flows over the life of the investment. The fair value of the bonds remained at $1,040 as of December 31, 2024. 2. $25,000 of Watson Company common stock. Feherty does not have the ability to significantly influence the operations of Watson. Feherty elected to account for this equity investment at fair value through OCI (FVOCI). Subsequent to Feherty's purchase of the stock, the fair value of the stock investment increased to $30,000 as of December 31, 2024. Required: 1. Indicate how Feherty would account for its investments when it acquired the Donald bonds and Watson stock. 2. For each of the following categories of Feherty's investments, calculate the effect of realized and unrealized gains and losses on Feherty's net income, other comprehensive income, and comprehensive income for the year ended December 31, 2024: (a) any Donald bonds accounted for at amortized cost that were purchased and held at year end, (b) any Donald bonds accounted for at amortized cost that were purchased and sold, (c) any Donald bonds accounted for at FVOCI that were purchased and held at year end, (d) any Donald bonds accounted for at FVOCI that were purchased and sold, and (e) the Watson stock. Ignore interest revenue and taxes. Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 2B Req 2C Req 2D Req 2E Indicate how Feherty would account for its investments when it acquired the Donald bonds and the Watson stock. The Donald Company 10 bonds held to collect contractual cash flows The Donald Company 40 bonds held for trading purposes The Watson Company stock would be accounted for Req 1 Req 2A > Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 2B Req 2C Req 2D Req 2E For any Donald bonds accounted for at amortized cost that were purchased and held at year end, calculate the effect of realized and unrealized gains and losses on Feherty's net income, other comprehensive income, and comprehensive income for the year ended December 31, 2024. Note: Leave no cells blank - be certain to enter "0" wherever required. Net income Other comprehensive income Net effect on comprehensive income Effect < Req 1 Req 2B > Show less Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 2B Req 2C Req 2D Req 2E For any Donald bonds accounted for at amortized cost that were purchased and sold, calculate the effect of realized and unrealized gains and losses on Feherty's net income, other comprehensive income, and comprehensive income for the year ended December 31, 2024. Note: Leave no cells blank - be certain to enter "0" wherever required. Net income Other comprehensive income Net effect on comprehensive income Effect < Req 2A Req 2C > Show less Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 2B Req 2C Req 2D Req 2E For any Donald bonds accounted for at FVOCI that were purchased and held at year end, calculate the effect of realized and unrealized gains and losses on Feherty's net income, other comprehensive income, and comprehensive income for the year ended December 31, 2024. Note: Leave no cells blank - be certain to enter "0" wherever required. Net income Other comprehensive income Net effect on comprehensive income > Effect Req 2B Req 2D > Show less Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 2B Req 2C Req 2D Req 2E For any Donald bonds accounted for at FVOCI that were purchased and sold, calculate the effect of realized and unrealized gains and losses on Feherty's net income, other comprehensive income, and comprehensive income for the year ended December 31, 2024. Note: Leave no cells blank - be certain to enter "0" wherever required. Net income Other comprehensive income Net effect on comprehensive income Effect < Req 2C Req 2E > Show less Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 2B Req 2C Req 2D Req 2E For the Watson stock, calculate the effect of realized and unrealized gains and losses on Feherty's net income, other comprehensive income, and comprehensive income for the year ended December 31, 2024. Ignore interest revenue and taxes. Note: Leave no cells blank - be certain to enter "0" wherever required. Net income Other comprehensive income Net effect on comprehensive income Effect < Req 2D Req 2E > Show less Feherty, Incorporated accounts for its investments under IFRS No. 9 and purchased the following investments during December 2024: 1. Fifty of Donald Company's $1,000 bonds. The bonds pay semiannual interest, return principal in eight years, and include no other cash flows or other features. Feherty plans to hold 10 of the bonds to collect contractual cash flows over the life of the investment and to hold 40, both to collect contractual cash flows but also to sell them if their price appreciates sufficiently. Subsequent to Feherty's purchase of the bonds, but prior to December 31, the fair value of the bonds increased to $1,040 per bond, and Feherty sold 10 of the 40 bonds. Feherty also sold 5 of the 10 bonds it had planned to hold to collect contractual cash flows over the life of the investment. The fair value of the bonds remained at $1,040 as of December 31, 2024. 2. $25,000 of Watson Company common stock. Feherty does not have the ability to significantly influence the operations of Watson. Feherty elected to account for this equity investment at fair value through OCI (FVOCI). Subsequent to Feherty's purchase of the stock, the fair value of the stock investment increased to $30,000 as of December 31, 2024. Required: 1. Indicate how Feherty would account for its investments when it acquired the Donald bonds and Watson stock. 2. For each of the following categories of Feherty's investments, calculate the effect of realized and unrealized gains and losses on Feherty's net income, other comprehensive income, and comprehensive income for the year ended December 31, 2024: (a) any Donald bonds accounted for at amortized cost that were purchased and held at year end, (b) any Donald bonds accounted for at amortized cost that were purchased and sold, (c) any Donald bonds accounted for at FVOCI that were purchased and held at year end, (d) any Donald bonds accounted for at FVOCI that were purchased and sold, and (e) the Watson stock. Ignore interest revenue and taxes. Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 2B Req 2C Req 2D Req 2E Indicate how Feherty would account for its investments when it acquired the Donald bonds and the Watson stock. The Donald Company 10 bonds held to collect contractual cash flows The Donald Company 40 bonds held for trading purposes The Watson Company stock would be accounted for Req 1 Req 2A > Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 2B Req 2C Req 2D Req 2E For any Donald bonds accounted for at amortized cost that were purchased and held at year end, calculate the effect of realized and unrealized gains and losses on Feherty's net income, other comprehensive income, and comprehensive income for the year ended December 31, 2024. Note: Leave no cells blank - be certain to enter "0" wherever required. Net income Other comprehensive income Net effect on comprehensive income Effect < Req 1 Req 2B > Show less Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 2B Req 2C Req 2D Req 2E For any Donald bonds accounted for at amortized cost that were purchased and sold, calculate the effect of realized and unrealized gains and losses on Feherty's net income, other comprehensive income, and comprehensive income for the year ended December 31, 2024. Note: Leave no cells blank - be certain to enter "0" wherever required. Net income Other comprehensive income Net effect on comprehensive income Effect < Req 2A Req 2C > Show less Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 2B Req 2C Req 2D Req 2E For any Donald bonds accounted for at FVOCI that were purchased and held at year end, calculate the effect of realized and unrealized gains and losses on Feherty's net income, other comprehensive income, and comprehensive income for the year ended December 31, 2024. Note: Leave no cells blank - be certain to enter "0" wherever required. Net income Other comprehensive income Net effect on comprehensive income > Effect Req 2B Req 2D > Show less Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 2B Req 2C Req 2D Req 2E For any Donald bonds accounted for at FVOCI that were purchased and sold, calculate the effect of realized and unrealized gains and losses on Feherty's net income, other comprehensive income, and comprehensive income for the year ended December 31, 2024. Note: Leave no cells blank - be certain to enter "0" wherever required. Net income Other comprehensive income Net effect on comprehensive income Effect < Req 2C Req 2E > Show less Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 2B Req 2C Req 2D Req 2E For the Watson stock, calculate the effect of realized and unrealized gains and losses on Feherty's net income, other comprehensive income, and comprehensive income for the year ended December 31, 2024. Ignore interest revenue and taxes. Note: Leave no cells blank - be certain to enter "0" wherever required. Net income Other comprehensive income Net effect on comprehensive income Effect < Req 2D Req 2E > Show less
Expert Answer:
Posted Date:
Students also viewed these accounting questions
-
A large city currently provides free water service to residents. The marginal social cost of making a gallon of water available per month is estimated to be 5 cents no matter how much water is used....
-
The average annual professors salary at a doctoral level at a private, independent institution is $159,964 for men and $147,702 for women. Consider the womens salaries. Assume that they are normally...
-
Contrast the NPV and the IRR methods of evaluating investment proposals. LO1
-
Prepare journal entries to record these selected transactions for Vitalo Company (assume that no reversing entries are recorded). Nov. 1 Accepted a $6,000, 180-day, 8% note dated November 1 from...
-
On October 1, 2017 Welch Auto Rentals purchases a new automobile for $30,000 to add to its fleet of rental cars. The automobiles are rented out on a short-term basis with rental fees calculated based...
-
Before tackling the Rosewood case, this initial question tests your ability to compute the CLV metric and then apply it in a simple breakeven analysis. The data below show the results of a Starbucks...
-
The accounts of Wade manufacturing showed the following balances at the beginning of December. Accounts: Debit: Raw Material Inventory $59,000 Work in process inventory $75,000 Finished Goods...
-
The following are selected operating data for Jackson Companys Blending Department for November 2016. Painting and packaging operations are carried out subsequently in other departments. Calculate...
-
The following data (and annotations) for March 2016 are for the work in process account of the first of Olympus Companys four departments used in manufacturing its only product. Assuming that Olympus...
-
Gay's Auto Repair Shop had the following inventory balances during July 2006: During the month of July the company purchased \(\$ 50,000\) of direct materials and incurred \(\$ 13,000\) of direct...
-
Prove the following properties of characteristic functions: (a) Every characteristic function has value unity at the origin. (b) The second-order characteristic function \(\mathbf{M}_{U...
-
The Old Masters Puzzle Company makes jigsaw puzzles primarily sold in museum gift shops. The manufacturing process includes using the departments related to gluing, cutting, and boxing. Each type of...
-
nd the following sum. -48.38+93.73 - 48.38+ 93.73 = (Type an integer or a decimal.)
-
Theres no reason for me to get excited about the choice between the weighted-average and FIFO methods in my process-costing system. I have long-term contracts with my materials suppliers at fixed...
-
Identify a major advantage of the FIFO method for purposes of planning and control. lo1
-
Why should the accountant distinguish between transferred-in costs and additional direct materials costs for a particular department? lo1
![Mobile App Logo](https://dsd5zvtm8ll6.cloudfront.net/includes/images/mobile/finalLogo.png)
Study smarter with the SolutionInn App