American Steel Corp. acquired the following securities in 2011: At the beginning of 2011, American Steel had
Question:
At the beginning of 2011, American Steel had a zero balance in each of its market adjustment accounts.
1. What entry or entries would be made at the end of 2011, assuming the preceding fair values?
2. If net income before any adjustments related to investment securities was $100,000, what would reported income be after adjustments? (Ignore incometaxes.)
Transcribed Image Text:
Fair Value, Security Classification Cost Dec. 31, 2011 Trading $10,000 16,000 Trading Available for sale 2000 Available for sale 20,000 Held to maturity 20,000 $12,000 10,000 15,000 15,000 22,000
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Related Book For
Intermediate Accounting
ISBN: 978-0324592375
17th Edition
Authors: James D. Stice, Earl K. Stice, Fred Skousen
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