Investment in HTM securities reported on the December 31, 2016 balance sheet is

a. $203,846

b. $204,938

c. $207,544

d. \($207,997\) 

On January 1, 2016, a company’s balance sheet reports its investments in financial instruments as follows:

Additional information:

a. The HTM securities are \($200,000\) face value debt securities purchased on January 1, 2014, at a yield of 4%. The securities have a 4-year total life and pay interest annually on December 31, at a coupon rate of 6%.

b. The trading securities on hand on January 1 were sold in 2016 for $180,000.

c. More trading securities were purchased for \($100,000\). They are still on hand at December 31, 2016, and have a fair value of $125,000.

d. AFS securities, originally purchased for \($26,000\) with a carrying value of \($25,000\) as of January 1, 2016, were sold for $29,000.

e. AFS securities on hand at December 31, 2016, have a fair value of $81,000.

Transcribed Image Text:

Assets Investment in trading securities. Investment in AFS securities. Investment in HTM securities.. Equity Accumulated other comprehensive income: Unrealized gains (losses) on AFS securities.... $160,000 100,000 207,544 $ 4,000