1. An entity had cash and share capital of $12,000,000 On January 1, 2020. At that date, the entity had no other asset, liability, or equity balances. On January 5, 2020, it purchased for cash $8,000,000 of debt securities at face value that it classified as FVTPL received interest of $900,000 during the year on these securities. In addition, it has an unrealized loss on these securities of $500,000. The tax rate is 20% (assumed that all revenue and expense are taxable). 

Compute the amount of other comprehensive income/(loss).

 

2. An entity reported the following information for 2020 (all in $): Sales revenue: 600,000, Cost of goods sold: 380,000, Operating expenses:80,000, Unrealized holding gain on FVTPL securities: 30,000, Interest received on the securities: 5,000, Dividend paid: 25,000. The entity uses two statement approach in reporting the comprehensive income. For 2020, ignoring tax effect, the entity would report net income and comprehensive income respectively of

3. An entity had income from continuing operations of $1,600,000 in 2020. During

2020 it disposed of its repair division at a pre-tax gain on disposal of $30,000. Prior

to disposal, the division operated at a pre-tax loss of $50,000. The tax rate was 30%

(assumed that all revenue and expense are taxable). What is the net income for

2020?

Answer rating: 100% (QA)

1 To compute the amount of other comprehensive incomeloss we need to calculate the unrealized gainlo... View the full answer