Use the following information for the questions 1 through 3. Below is information about several investments in
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Question:
Use the following information for the questions 1 through 3. Below is information about several investments in debt securities. The company carried no investments prior to 2020. The fluctuations in their fair values are not considered permanent. No investments were sold in 2020 or 2021.
Debt Investments: | Original Cost | Fair Value 12/31/2020 | Fair Value 12/31/2021 |
Held to Maturity Debt Inv | $370,000 | $375,000 | $400,000 |
Trading Debt Investments | $135,000 | $139,000 | $175,000 |
Available-for-Sale Debt Inv | $140,000 | $130,000 | $150,000 |
Total | $645,000 | $644,000 | $725,000 |
Required:
What total unrealized gain or loss would the company report in its 2021 income statement relative to its investments in debt securities?
Expert Answer:
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