Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. a company has shares in 3m company stock that it o

A company has shares in 3M Company stock that it originally bought for $100,000. On...

60.1K

Verified Solution

Question

Accounting

A company has shares in 3M Company stock that it originally bought for $100,000. On 3/31/2013, this investment was valued at $130,000 on the balance sheet. On 4/4/2013, the company sells the stock for $110,000. The company accounts for this investment using the Available-for-Sale method

How will this transaction show up on the income statement?

Gain on sale of Investments of $20,000

Loss on sale of Investments of $20,000

Loss on sale of Investments of $10,000

It will not affect the income statement

Gain on sale of Investments of $10,000

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

describe the process of gastric digestion. What cells are involved and what do they secrete? How...

Medical Sciences
Q

Check the stability of the reinforced cantilever retaining wall against overturning only. Given: Unit weight of concrete =...

Civil Engineering
Q

Using field axioms and order axioms prove the following theorems (explain every step by referencing basic...

Advance Math
Q

write a counter argument on how is social media affecting young adults, parents, or teens for...

General Management
Q

When the same note is played on a sitar and a flute the sound produced...

Physics
Q

2 Tiana and Ronald like to run as part of their exercise routines on the...

Geometry
Q

1 The number of radians in a 275 angle can be expressed as k where...

Geometry
Q

R is the region bounded by the functions f(x) = 3 - 2 sin (x)...

Calculus
Q

The income statement and comparative balance sheet of grand tree, Inc. follow: net...

Accounting
Q

Accounting
Q

Yogi expects total sales of $360,000 in January and $400,000 in February. Assume that Yogi's...

Accounting
Q

A) You buy a 6 year bond with an annual 8% coupon at par value,...

Finance