Calculate the change in the unrealized gain (loss) in the company's investments in debt. The table below
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Question:
- Calculate the changein the unrealized gain (loss) in the company's investments in debt. The table below may be helpful or if you prefer, you could also use a t-account.
End-of-year net unrealized gain (loss)
Beginning-of-year net unrealized gain (loss)
Change
b. Use the company's statement of comprehensive income to identify the pretax effect of available-for-sale investments in debt on comprehensive income. Note that your answer will be almost identical to your answer to part a. (+ or - a $1 or 2). Show your supporting calculations.
- What is the journal entry that would be recorded for part b of this question? Include the journal entry in a table below with debit and credit entries fully labeled.
- What is the cumulative amount in AOCI relating to unrealized gains (losses) on marketable securities before tax? How does this amount relate to your answer to part a of this question?
Related Book For
Macroeconomics
ISBN: 978-1319120054
3rd Canadian edition
Authors: Paul Krugman, Robin Wells, Iris Au, Jack Parkinson
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