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34. Refer to the previous question. Assume that on December 31,2022 , the company sold the investment portfolio in its entirety for the amount of
34. Refer to the previous question. Assume that on December 31,2022 , the company sold the investment portfolio in its entirety for the amount of its market value. The company will recognize on December 31 : a. An unrealized loss on the statement of income and expense b. A realized loss on the statement of income and expense c. A realized loss and a reclassification of AOCI in the Statement of Income and Expense d. None of the above. 35. A company has a bond investment classified as "Available for sale." As of December 31 , 2022 , the amortized cost was $147,500 and the market value was $150,000. The company will recognize in its financial statements for the year 2022 : a. An unrealized gain of $2,500 on the Income Statement of Income and Expenses b. An unrealized gain of $2,500 on the Statement of comprehensive income c. A credit balance of Fair value adjustment in the Balance Sheet. d. Both "b" and "c" are correct. 36. Assume that on July 15,2023 , when the amortized cost of the investment in the previous question was $148.00, the company sold the investment for $152,000, which was the market value on that date. In the daily entry to record the sale, the company will recognize: a. An unrealized gain of $4,000 on the Statement of Income and Expenses b. An unrealized gain of $4,000 on the Statement of comprehensive income c. A realized gain of $4,000 on the Statement of Income and Expenses d. A realized gain of $2,000 on the Statement of Income and Expenses. 37. AOCI item reclassification adjustments to the Statement of Income and Expense are required when investments classified as: a. Te hold until maturity b. Te negotiate c. axailable for sale d. All of the above
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