S&L Financial buys and sells securities expecting to earn profits on short-term differences in price. On December 27, 2011, S&L purchased Coca-Cola common shares for $875,000 and sold the shares on January 3, 2012, for $880,000. At December 31, the shares had a fair value of $873,000. What pretax amounts did S&L include in its 2011 and 2012 earnings as a result of this investment?
Answer to relevant QuestionsS&L Financial buys and sells securities which it classifies as available-for-sale. On December 27, 2011, S&L purchased Coca-Cola common shares for $875,000 and sold the shares on January 3, 2012, for $880,000. At December ...Turner Company owns 40% of the outstanding stock of ICA Company. During the current year, ICA paid a $5 million cash dividend on its common shares. What effect did this dividend have on Turner's 2011 financial statements? ...LED Corporation owns $1,000,000 of Branch Pharmaceuticals bonds and classifies its investment as securities available-for-sale. The market price of Branch's bonds fell by $450,000, due to concerns about one of the company's ...Construction Forms Corporation buys securities to be available for sale when circumstances warrant, not to profit from short-term differences in price and not necessarily to hold debt securities to maturity. The following ...Fizer Pharmaceutical paid $68 million on January 2, 2011, for 4 million shares of Carne Cosmetics common stock. The investment represents a 25% interest in the net assets of Carne and gave Fizer the ability to exercise ...
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