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Problem 8 Sir Eddie

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Chlorophyll Arafol II
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14 views4 pages

Problem 8 Sir Eddie

Uploaded by

Chlorophyll Arafol II
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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Trading Security/

2018 Invest. At FMVTPL Invest. At FMVTOCI


Feb. 1 Trading Security 5,486,000 Invest at FMVTOCI 5,486,000
Cash 5,486,000 Cash

Dec. 31 Trading Security 264,400 Invest at FMVTOCI 94,325


UHG - P/L 264,400 Interest Income

FMV this year


Amortized Cost this year
UHG - OCI

Invest at FMVTOCI 170,075


UHG - OCI

PV of P1 at 14% for 3 years


PV of P - P6M x 0.68 = 4,080,000
PV of I - 720,000 x 2.32 = 1,670,400
PV or FMV this year 5,750,400
FMV last year 5,486,000
UHG - P/L 264,400

Int. Received Int. Inc. amort Amort. Cost


5,486,000 2/1/2018
660,000 754,325 94,325 5,580,325 12/31/2018
720,000 822,900 102,900 5,588,900 2/1/2019 Jan. 2019 Int.
660,000 768,474 108,474 5,697,374 12/31/2019 Feb - Dec. 2019
720,000 838,335 118,335 5,707,235 2/1/2020 Interest 2019
660,000 784,745 124,745 5,831,980 12/31/2020 Jan. 2020 int.
720,000 856,085 136,085 5,843,320 2/1/2021 Feb-Dec. 2020
180,000 219,125 39,125 5,882,445 5/1/2021 Interest 2020

2019
Dec. 31 Trading Security 266,400 Invest at FMVTOCI 117,049
UHG - P/L 266,400 Interest Income

PV of P1 at 12% for 2 years Jan. 2019 (102,900 - 94,325)


PV of P = P6M x 0.80 = 4,800,000 Feb-Dec. 2019
PV of I = 720,000 x 1.69 = 1,216,800
PV or FMV this year 6,016,800
FMV last year 5,750,400 FMV this year
UHG - P/L 266,400 Amortized Cost this year
Total
UHG - OCI
Adjustment

Invest at FMVOCI 149,351


UHG - OCI

2020 UHL - P/L 237,600 Invest at FMVTOCI 134,606


Trading Security 237,600 Interest Income

PV of P1 at 16% for 1 year Jan. 2020 (118,335 - 108,474)


PV of P = P6M x 0.86 = 5,160,000 Feb-Dec. 2019
Pv of I = 720,000 x 0.86 = 619,200
PV or FMV this year 5,779,200
FMV last year 6,016,800 FMV this year
UHL - P/L (237,600) Amortized Cost this year
UHL - OCI

UHL - OCI 52,780


Investment at FMVTOCI

OHG - OCI 319,426


Investment at FMVTOCI

2021 Cash 6,480,000 Cash 6,480,000


(P6M x 1.05 + 180,000) Invest at FMVTOCI
Trading Security 5,779,200 Interest Income
Interest Income 180,000 Retained Earnings
Gain on sale 520,800
FMVTOCI Invest. At Amortized Cost
Invest at Amort. Cost 5,486,000
5,486,000 Cash 5,486,000

Invest at Amort. Cost 94,325


94,325 Interest Income 94,325

5,750,400
5,580,325
170,075

170,075

68,575
768,474
837,049
69,861
784,745
854,606

Invest at Amort. Cost 117,049


117,049 Interest Income 117,049

8,575
108,474
117,049
6,016,800
5,697,374
319,426
170,075
149,351

149,351

Invest at Amort. Cost 134,606


1,346,060 Interest Income 135,606

9,861
124,745
134,606

5,779,200
5,831,980
(52,780)

52,780

319,426

Cash 6,480,000
5,779,200 Invest at Amort. Cost 5,882,445
180,000 Interest Income 180,000
520,800 Gain on Sale 417,555

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