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  • IA Activity 3rd Investment

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    The document provides financial information for multiple companies. Garr Company saw an unrealized gain of $100,000 from 2013 to 2014. Wood Company received $240,000 in dividend income from a 10% preference dividend rate. Adam Company spent a total of $3,500,000 acquiring new shares through an initial rights offering of $1,250,000 and paying $2,250,000 for the new shares. Magic Company realized a $200,000 gain from selling an investment but had a $300,000 unrealized loss, resulting in a $100,000 net loss. Fay Company had a $500,000 unrealized loss in 2014 and a $100,000 unrealized gain in

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    The document provides financial information for multiple companies. Garr Company saw an unrealized gain of $100,000 from 2013 to 2014. Wood Company received $240,000 in dividend income from a 10% preference dividend rate. Adam Company spent a total of $3,500,000 acquiring new shares through an initial rights offering of $1,250,000 and paying $2,250,000 for the new shares. Magic Company realized a $200,000 gain from selling an investment but had a $300,000 unrealized loss, resulting in a $100,000 net loss. Fay Company had a $500,000 unrealized loss in 2014 and a $100,000 unrealized gain in

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
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    Download as xlsx, pdf, or txt
    7 views2 pages

    IA Activity 3rd Investment

    Uploaded by

    Bam Bam
    The document provides financial information for multiple companies. Garr Company saw an unrealized gain of $100,000 from 2013 to 2014. Wood Company received $240,000 in dividend income from a 10% preference dividend rate. Adam Company spent a total of $3,500,000 acquiring new shares through an initial rights offering of $1,250,000 and paying $2,250,000 for the new shares. Magic Company realized a $200,000 gain from selling an investment but had a $300,000 unrealized loss, resulting in a $100,000 net loss. Fay Company had a $500,000 unrealized loss in 2014 and a $100,000 unrealized gain in

    Copyright:

    © All Rights Reserved
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    Flag for inappropriate content
    Download as xlsx, pdf, or txt
    of 2

    Garr Company

    Cost 4,250,000
    Unrealized loss, 2013 - 230,000
    Market Valuee-Dec 31, 2013 4,020,000

    Market Value-Dcember 31, 2014 4,120,000


    Market Value-December 31, 2013 4,020,000
    Unrealized gain-2014 100,000

    Wood Company

    Declared and paid preference dividends 2,400,000


    Rate 0.10
    Dividend Income 240,000

    Adam Company

    Initial cost of rights 1,250,000


    Cash paid for new shares 2,250,000
    Total cost of new shares 3,500,000

    Magic Company

    Sold investment @ 70 per share 1,400,000


    Cost of sold Investment @ 60 per share 1,200,000
    Gain on sale 200,000

    Market Value 3,300,000


    Carrying amount 3,600,000
    Unrealized loss - 300,000

    Gain on sale 200,000


    Unrealized Loss - 300,000
    Net Loss - 100,000

    Fay Company

    Market Value-2014 3,300,000


    Market Value-2013 3,800,000
    Unrealized loss-2014 - 500,000
    Unrealized gain-2013 100,000
    cumulative Net loss - 400,000

    Mylene Company
    # of shares COST
    Purchased Investment 50,000 3,600,000
    Received Investment 50,000 4,250,000
    TOTAL 100,000 7,850,000

    Sale Price 2,700,000


    Cost of investment sold 2,355,000
    Gain on sale 345,000

    Carmela Company

    Financial Instrument Cost 4,000,000


    Acquisition costs 700,000
    Total Acquisition Cost 4,700,000

    Fair value 5,600,000


    Total Acquisition cost 4,700,000
    Unrealized gain 900,000

    ABC Company

    Purchased shares of 40k @ 100 4,000,000


    Brokerage fee 120,000
    Cost of purchased shares 4,120,000
    Paid dividend 200,000
    Cost of Investment 3,920,000

    Inspiration Company

    Non-Trading fair value-2014 3,700,000


    Historical Cost 3,000,000
    Cumulative Gain 700,000

    Fair Value- December 31, 2014 3,800,000


    Fair Value- December 31, 2013 4,000,000
    Unrealized loss - 200,000

    Wray Company

    Dividend Income 40,000

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