Merlin Enterprises sold the following equity investment on September 30, year 2: What is the amount of

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Merlin Enterprises sold the following equity investment on September 30, year 2:

What is the amount of the realized gain or loss on Merlin€™s year 2 income statement, assuming that the investment in Beard Inc. is classified as a trading security?
a. $ 0
b. $( 8,000)
c. $ 4,000
d. $ 12,000

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Intermediate Accounting

ISBN: 978-0132162302

1st edition

Authors: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella

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Question Posted: Nov 24, 2015 05:23 AM

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Merlin Enterprises sold the following equity investment on September 30, year 2: What is the amount of

Question:

Market Value Cost 12/31/Y1 9/30/Y2 Beard Inc $67000 $59,000 $71,000

Step by Step Answer:

Choice c is correct The realized gain on the sale of the Beard Inc trading security is ...View the full answer

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