Question
In: Accounting
Novi purchased ABC bonds on 1/1/21. Data regarding these available-for-sale securities follow:
Novi purchased ABC bonds on 1/1/21. Data regarding these available-for-sale securities follow:
Cost | MV | |
December 31, 2021 | $150,000 | $130,000 |
December 31, 2022 | 150,000 | 161,000 |
December 31, 2023 | 150,000 | 155,000 |
On 1/1/24, Novi sold $40,000 (cost) of the securities for $40,100. Market Value of the remaining securities at 12/31/24 was $108,000.
The net amount of Unrecognized Gain or Loss to appear in the Other Comprehensive Income section of the 2024 Comprehensive Income Statement is:
Select one:
a. $7,000
b. $2,000
c. $3,000
d. $2,100
e. $3,100
Solutions
Expert Solution
OPTION -
'B'
*Unrealised gain should be transferred to the other comprehensive
income
*Realised gain should transfer to income statement.
Cost of securities after
sale Amount
Total cost $1,50,000
Cost of sold securities ($40,000)
Cost of securuties after sale $1,10,000
Market value of the remaining securities at 12/31/2024 ($1,08,000)
The net amount of Unrecognised Gain or Loss = $2,000
ekkarill92 answered 2 years agoRelated Solutions
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$19,340
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determined that it should account for the bonds as an
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1
Name
Number of Shares
Total Cost
Total Fair Value
2
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4
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1
Name
Number of Shares
Total Cost
Total Fair Value
2
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3
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4
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