Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. abc purchased the following debt security in 2018

ABC purchased the following debt security in 2018 with the purpose of resale in the...

90.2K

Verified Solution

Question

Accounting

ABC purchased the following debt security in 2018 with the purpose of resale in the near future:
Description Cost Amortized Cost
12/31/18
FMV
12/31/18
Amortized Cost
12/31/19
FMV
12/31/19
5-yr.,5% bonds
X Corp.
$450,000 $458,000 $515,000 $469,000 $500,000
7. Determine the unrealized holding gain (loss) to be reported in 2018 other comprehensive income.
A. $0
B. $8,000
C. $57,000
D. $65,000
E.($8,000)
8. Determine the unrealized holding gain (loss) to be reported in 2019 earnings.
A. $0
B.($26,000)
C.($15,000)
D. $19,000
E. $31,000
F. $50,000
9. The unrealized holding gain (loss) from 2019 should be reported on the statement of cash flows
(indirect method)
A. As an addition to net income in determining CFO
B. As a subtraction to net income in determining CFO
C. As an addition to CFI
D. As a subtraction to CFI
E. None of the above Answer E, A, B

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: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

You plan to deposit $1,000 in Year 1, $1,200 in Year 2 and $2,000 in year...

Finance
Q

A charge of -2.75 µC is fixed at the center of a compass. Two additional charges...

Physics
Q

Thioester hydrolysis yielding more energy than O ester hydrolysis is ultimately due to Sulphur being...

Biology
Q

ese possible hypotheses about stars in our universe as falsifiable or non falsifiable Millions of...

Biology
Q

separating DNA from mixtures genome editing testing rodent social behavior Question 21 1 point 4...

Biology
Q

4 None of the above The maximum electric field at a point on the axis...

Physics
Q

Complete the following table by filling in missing amounts. (Use 360...

Accounting
Q

Consider a town in which only two residents, Khalid and Sabrina, own wells that produce...

Accounting
Q

Udessa, Inc., reports the tollowIng intormation concerning operations tor the most recent month: There are...

Accounting
Q

THIS IS A PROBLEM QUESTION - PLEASE USE IRAC FORMAT Australian Farms Pty Ltd has...

Accounting
Q

The following comparative income statement (in thousands of dollars) for the two recent fiscal years...

Accounting
Q

Sami Design Ltd manufactures Sand musical instrumenta for use by hgh schoel studenta. The company...

Accounting