The following information pertains to Lark Corp.'s available-for- sale securities: December 31 Year 2 Cost $100,000...
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The following information pertains to Lark Corp.'s available-for- sale securities: December 31 Year 2 Cost $100,000 90,000 Year 3 $100,000 120,000 Fair value Differences between cost and fair values are considered to be temporary. The decline in fair value was properly accounted for at December 31, Year 2. Ignoring tax effects, by what amount should other comprehensive income be credited at December 31, Year 3? a. $0. b. $10,000. c. $20,000. d. $30,000. The following information pertains to Lark Corp.'s available-for- sale securities: December 31 Year 2 Cost $100,000 90,000 Year 3 $100,000 120,000 Fair value Differences between cost and fair values are considered to be temporary. The decline in fair value was properly accounted for at December 31, Year 2. Ignoring tax effects, by what amount should other comprehensive income be credited at December 31, Year 3? a. $0. b. $10,000. c. $20,000. d. $30,000.
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The correct answer is option A Answer Heve Date December ... View the full answer
Related Book For
Fundamental Managerial Accounting Concepts
ISBN: 978-0078025655
7th edition
Authors: Thomas Edmonds, Christopher Edmonds, Bor-Yi Tsay, Philip Old
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