Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

10. During 2022, Hawkins Company purchased marketable equity securities as a short-term investment. AtDecember 31, 2022, the balance in the allowance to reduce marketable equity

10. During 2022, Hawkins Company purchased marketable equity securities as a short-term investment. AtDecember 31, 2022, the balance in the allowance to reduce marketable equity securities to market was$23,000.There were no security transactions during 2022.Pertinent information at December 31, 2022, is as follows:

SecurityCostMarket Value 12/31/2022

X$ 245,000$230,000

Y180,000182,000

Z60,00060,000

In its 2022 income statement, Hawkins should report:

A realized loss of $13,000.

A recovery of an unrealized loss of $13,000.

$0, because there cannot be a writeup according to GAAP.

A recovery of an unrealized loss of $10,000.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Statistics For Managers Using Microsoft Excel

Authors: David M. Levine, David F. Stephan, Kathryn A. Szabat

7th Edition

978-0133061819, 133061817, 978-0133130805

Students also viewed these Accounting questions

Question

Explain the difference between financial risk and business risk.

Answered: 1 week ago