Question: S&L Financial buys and sells securities that it typically classifies as available-for-sale. On December 27, 2018, S&L purchased Coca-Cola bonds at par for $875,000 and

S&L Financial buys and sells securities that it typically classifies as available-for-sale. On December 27, 2018, S&L purchased Coca-Cola bonds at par for $875,000 and sold the bonds on January 3, 2019, for $880,000. At December 31, the bonds had a fair value of $873,000. When it purchased the Coca-Cola bonds, S&L Financial decided to elect the fair value option for this investment. What pretax amounts did S&L include in its 2018 and 2019 net income as a result of this investment (ignoring interest)?

Step by Step Solution

★★★★★

3.45 Rating (171 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

Because SL Financial elected the fair value option for ... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

1265-B-C-A-C-B-A-M(2733).docx

120 KBs Word File

Students Have Also Explored These Related Cost Accounting Questions!

The following three tables make up a simple reservation system for a small campground. The database should allow for a camper to make multiple reservations for future dates and for a camping spot to...

Fickle Financial buys and sells securities that it classifies as available-for-sale. On December 28, Fickle purchased Microsoft common shares for $485,000. On December 31, the shares had a fair value...

Summit Financial buys and sells securities that it classifies as available-for-sale. On December 28, Summit purchased Microsoft common shares for $485,000. On December 31, the shares had a fair value...

A capital asset (equipment) with a fair value of $1,500,000 and a remaining useful life of ten years and land with a fair value of $2,000,000 is donated to a not-for-profit organization. The...

please show work! S&L Financial buys and sells securities that it typically classifies as available-for-sale. On December 27, 2018, S&L purchased Coca-Cola bonds at par for $965,000 and sold the...

S&L Financial buys and sells securities that it typically classifies as available-for-sale On December 27, 2018, S&l. purchased Coca- Cola bonds at par for $875,000 and sold the bonds on January 3,...

6 S&L Financial buys and sells securities that it typically classifies as available-for-sale. On December 27, 2018, S&L purchased Coca Cola bonds at par for $875,000 and sold the bonds on January 3,...

S&L Financial buys and sells securities that it typically classifies as available-for-sale. On December 27, 2021, S&L purchased Coca-Cola bonds at par for $875,000 and sold the bonds on January 3,...

S&L Financial buys and sells securities that it typically classifies as available-for-sale. On December 27, 2021, S&L purchased Coca-Cola bonds at par for $965,000 and sold the bonds on January 3,...

Brief Exercise 12-6 Fair value option; available-for-sale securities [LO12-7] S&L Financial buys and sells securities that it typically classifies as available-for-sale. On December 27, 2013, S&L...

Brief Exercise 12-6 Fair value option; available-for-sale securities [LO12-7] S&L Financial buys and sells securities that it typically classifies as available-for-sale. On December 27, 2016, S&L...

The Butler-Perkins Company (BPC) must decide between two mutually exclusive projects. Each costs $6,500 and has an expected life of 3 years. Annual project cash flows begin 1 year after the initial...

A drag strut splice between 2x4 No.2 DF-L top plate and a 4x6 No.1 DF-L header needs to resist tension force (seismic) equal to the capacity of the 2x4 in tension. 1. Determine the maximum tension...

Which pair contains two common control accounts? Accounts receivable and equipment. Accounts receivable and common stock. Accounts receivable and accounts payable. Equipment subsidiary ledger and...

The accounting records of From the Earth Ceramics included the following balances at the end of the period: In the past, From the Earths warranty expense has been 7% of sales. During 2010 the...

The number of complaints per day, X, received by a cable TV distributor has the probability distribution align="center"> (a) Find the expected number of complaints per day. (b) Find the standard...

Hilton Company completed these long-term available-for-sale investment transactions during 2016: 2016 Apr 10......Purchased 300 shares of Micros cape stock, paying $20 per share. .................

Pierce Self Storage purchased land, paying $160,000 cash as a down payment and signing a $150,000 note payable for the balance. Pierce also had to pay delinquent property tax of $5,000, title...

The number of days, X, that it takes the post office to deliver a notarized letter cross-country between City A and City B has the probability distribution align="center"> (a) Find the expected...

10 Complete a bank reconciliation.

NutraLabs, Inc., leased a protein analyzer to Werner Chemical, Inc., on September 30, 2021. NutraLabs manufactured the machine at a cost of $5 million. The five-year lease agreement calls for Werner...

Warren Marina owns a large marina that contains numerous boat slips of various sizes. Warren contracts with boat owners to provide slips to house the customers boats. Lucky Fisherman Fleet contracted...

To raise operating funds, North American Courier Corporation sold its building on January 1, 2021, to an insurance company for $500,000 and immediately leased the building back. The lease is for a...

Discuss the reasons and situations in which researchers would want to use linear regression. How would a researcher know whether linear regression would be the appropriate statistical technique to...

Sean Ay B dos sucesos tales que: \f\fAVB)\f\f\f

Time Series Analysis is a set of advanced statistical techniques used for data gathered on a specific characteristic over a period of time . Time series data are used in business to examine patterns,...