Ayayai Corporation, a clothing retailer, had income from operations (before tax) of $300,000, and recorded the...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Ayayai Corporation, a clothing retailer, had income from operations (before tax) of $300,000, and recorded the following before-tax gains/(losses) for the year ended December 31, 2020: Gain on disposal of equipment Unrealized (loss)/gain on FV-NI investments (43,200) (Loss)/gain on disposal of building Gain on disposal of FV-NI investments 21,600 (54,400) 26,400 Ayayai also had the following account balances as at January 1, 2020: Retained earnings $328,000 Accumulated other comprehensive income (this was due to a revaluation surpius on land) 30,800 Accumulated other comprehensive income (this was due to gains on FV-OCI investments) 44,000 As at January 1, 2020, Ayayai had one piece of land that had an original cost of $142,000 that it accounted for using the revaluation model. It was most recently revalued to fair value on December 31, 2019, when its carrying amount was adjusted to fair value of $172,800. In January 2020, the piece of land was sold for proceeds of $172,800. In applying the revaluation model, Ayayai maintains the balance in the Revaluation Surplus (OCI) account until the asset is retired or disposed of. In 2015, Ayayai purchased a portfolio of debt investments that the company intended to hold for longer term and classified the portfolio of investments as fair value through other comprehensive income (FV-OCI) with gains/losses recycled through net income. The investments in the portfolio are traded in an active market. Ayayai records unrealized gains and losses on these investments as OCI, and then books these gains and losses to net income when they are impaired or sold. The portfolio's carrying amount on December 31, 2019, was $88,000. The entire portfolio was sold in November 2020 for proceeds of $100,800. Ayayai's income tax expense for 2020 was $79,200. Ayayai prepares financial statements in accordance with IFRS. Calculate net income for the year ended December 31, 2020. Ayayai Corporation Partial Statement of Income Ayayai Corporation, a clothing retailer, had income from operations (before tax) of $300,000, and recorded the following before-tax gains/(losses) for the year ended December 31, 2020: Gain on disposal of equipment Unrealized (loss)/gain on FV-NI investments (43,200) (Loss)/gain on disposal of building Gain on disposal of FV-NI investments 21,600 (54,400) 26,400 Ayayai also had the following account balances as at January 1, 2020: Retained earnings $328,000 Accumulated other comprehensive income (this was due to a revaluation surpius on land) 30,800 Accumulated other comprehensive income (this was due to gains on FV-OCI investments) 44,000 As at January 1, 2020, Ayayai had one piece of land that had an original cost of $142,000 that it accounted for using the revaluation model. It was most recently revalued to fair value on December 31, 2019, when its carrying amount was adjusted to fair value of $172,800. In January 2020, the piece of land was sold for proceeds of $172,800. In applying the revaluation model, Ayayai maintains the balance in the Revaluation Surplus (OCI) account until the asset is retired or disposed of. In 2015, Ayayai purchased a portfolio of debt investments that the company intended to hold for longer term and classified the portfolio of investments as fair value through other comprehensive income (FV-OCI) with gains/losses recycled through net income. The investments in the portfolio are traded in an active market. Ayayai records unrealized gains and losses on these investments as OCI, and then books these gains and losses to net income when they are impaired or sold. The portfolio's carrying amount on December 31, 2019, was $88,000. The entire portfolio was sold in November 2020 for proceeds of $100,800. Ayayai's income tax expense for 2020 was $79,200. Ayayai prepares financial statements in accordance with IFRS. Calculate net income for the year ended December 31, 2020. Ayayai Corporation Partial Statement of Income
Expert Answer:
Answer rating: 100% (QA)
Ayayai Corporation Partial Income Statement For the year ended December 31 2020 Income from Operatio... View the full answer
Related Book For
Intermediate Accounting
ISBN: 978-0176509736
10th Canadian Edition, Volume 1
Authors: Donald Kieso, Jerry Weygandt, Terry Warfield, Nicola Young,
Posted Date:
Students also viewed these accounting questions
-
The following data relate to inventory for the year ended December 31, 2009. A physical inventory on December 31, 2009, indicates that 600 units are on hand and that they came from the July 1...
-
The Big and Rich Corporation had income from operations before tax for 2014 of $7.3 million. In addition, it suffered an unusual and infrequent loss of $ 1,770,000 from a tornado. Of this amount,...
-
the olive corporation income statement for the year ended december 31, 2019 gross income from operations$270,000 qualified dividends received from a 35 percentowned domestic corporation20,000 total...
-
A flat and infinitely large sheet with uniform charge density moves with constant speed in a direction parallel to its surface. Confirm the differential form of Poyntings theorem at every point not...
-
Columbine Granite produces a number of different granite products from its granite quarry in Georgia. The production process begins when a 50- foot- tall block of solid granite is excavated from the...
-
TQ3.1: Which torts are the most likely to protect an employee's privacy interests, and in what circumstances? TQ3.2: In what circumstances might an employer be justified in investigating an...
-
Determine the bending strain energy in the cantilever beam. Solve the problem two ways. (a) Apply Eq. 14-17. (b) The load \(w d x\) acting on a segment \(d x\) of the beam is displaced a distance...
-
The RMC Corporation blends three raw materials to produce two products: a fuel additive and a solvent base. Each ton of fuel additive is a mixture of 25 ton of material 1 and 35 ton of material 3. A...
-
A bus travels on a northbound street for 20.0 s at a constant velocity of 10.0 m/s. After stopping for 20.0 s, it travels at a constant velocity of 15.0 m/s for 30.0 s to the next stop, where it...
-
Faced with rising pressure for a $15 per hour minimum wage rate, the farming industry is currently exploring the possible use of robotics to replace some farm workers. The Lettuce Bot is one such...
-
How does your organization leverage sophisticated data analytics and metrics to analyze performance trends, identify areas for improvement, and drive data-driven decision-making processes?
-
What are the two most important kinds of criteria that analysts should consider when they specify physical output requirements? Why are they important?
-
What do file server systems and client/server systems have in common? What is different? What are the most important advantages of a client/ server solution?
-
What are some of the design issues that analysts need to consider?
-
What are the steps basic for designing output?
-
What are some of the output design guidelines?
-
1.Eric is purchasing a put option to hedge his transaction exposure. It has an underlying asset of MXN 295,220, a strike price of USD 0.053 per MXN. What is his payoff on this option if at maturity...
-
What types of questions can be answered by analyzing financial statements?
-
Fred Moss, owner of Medici Interiors Inc., is negotiating for the purchase of Athenian Galleries Ltd. The condensed statement of financial position of Athenian follows in an abbreviated form: Medici...
-
Write a brief essay highlighting the differences between IFRS and accounting standards for private enterprises noted in this chapter, discussing the conceptual justification for each. Discuss.
-
Refer to the annual financial statements of Shoppers Drug Mart for its fiscal year ended December 31, 2011, found in Appendix 5B. Instructions (a) Review Shoppers Drug Mart's balance sheet. Identify...
-
Cavett Problem. A process having multiple recycle loops formulated by R.H. Cavett [Proc. Am. Petrol. Inst., 43, 57 (1963)] has been used extensively to test tearing, sequencing, and convergence...
-
Consider the ammonia process in which \(\mathrm{N}_{2}\) and \(\mathrm{H}_{2}\) (with impurities \(\mathrm{Ar}\) and \(\mathrm{CH}_{4}\) ) are converted to \(\mathrm{NH}_{3}\) at high pressure...
-
Use a process simulator to model a two-stage compression system with an intercooler. The feed stream consists of \(95 \mathrm{~mol} \%\) hydrogen and \(5 \mathrm{~mol} \%\) methane at \(100^{\circ}...
Study smarter with the SolutionInn App