Merlin Enterprises sold the following equity investment on September 30, year 2: What is the amount of
Question:
What is the amount of the realized gain or loss on Merlin€™s year 2 income statement, assuming that the investment in Beard Inc. is classified as a trading security?
a. $ 0
b. $( 8,000)
c. $ 4,000
d. $ 12,000
Transcribed Image Text:
Market Value Cost 12/31/Y1 9/30/Y2 Beard Inc $67000 $59,000 $71,000
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Choice c is correct The realized gain on the sale of the Beard Inc trading security is ...View the full answer
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Related Book For
Intermediate Accounting
ISBN: 978-0132162302
1st edition
Authors: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
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