American Steel Corp. acquired the following securities in 2015: At the beginning of 2015, American Steel had
Question:
American Steel Corp. acquired the following securities in 2015:
At the beginning of 2015, American Steel had a zero balance in each of its market adjustment accounts.
1. What entry or entries would be made at the end of 2015, assuming the preceding fair values?
2. If net income before any adjustments related to investment securities was $100,000, what would reported income be after adjustments? (Ignore income taxes.)
Transcribed Image Text:
Fair Value, Dec. 31, 2015 Security Classification Cost Trading Trading Available for sale 2,000 Available for sale 20,000 Held to maturity20,000 $10,000 16,000 $12,000 10,000 15,000 15,000 22,000
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