Gunz Inc. is a medium-sized company involved in the manufacture of paints in northern Ontario. It has
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Gunz has several investments on the statement of financial position and needs to ensure that they are in accordance with the appropriate GAAP.
The company has a policy of placing excess funds in shares so that it can earn a higher return than normally in the bank. They have various investments, which cost $120,000. They incurred transaction costs of $1,500 on the acquisitions that are currently included in the cost. The fair value of these investments as a portfolio is $150,000, although some specific investments have increased in value while others have decreased.
Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...
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