As of December 31, 2019, Company A has the following investments in marketable securities: Acquisition December 31,
Question:
As of December 31, 2019, Company A has the following investments in marketable securities:
Acquisition December 31, 2019
Cost Market Value
Trading Portfolio –
Company B Common Stock $110,000 $112,000
Available for Sale Portfolio –
Company C Common Stock $355,000 $354,000
Hold-To-Maturity Portfolio –
Company D Debentures $500,000 $497,000
Additional Information: All three investments were purchased during 2019. In 2020, Company A sold its investment in Company B for $111,000 and its investment in Company C for $356,000. As of December 2020, the market value of the investments in Company D Debentures was $502,000.
Calculate the following (and be sure to identify whether a gain or loss):
A. Holding gain/loss recognized in the income statement in 2019
B. Holding gain/loss recognized in other comprehensive income in 2019
C. Holding gain/loss recognized in the income statement in 2020
D. Holding gain/loss recognized in other comprehensive income in 2020
E. Balance of accumulated other comprehensive income as of December 31, 2020
Financial Accounting an introduction to concepts, methods and uses
ISBN: 978-0324789003
13th Edition
Authors: Clyde P. Stickney, Roman L. Weil, Katherine Schipper, Jennifer Francis