A company purchases debt securities for $ 2 0 0 , 0 0 0 at the beginning of 2 0 2 2 It classifies $ 8 0 , 0 0 0 as trading securities and $ 1 2 0 , 0 0 0 as AFS securities It sells the securities in 2 0 2 3 Required For each of the following scenarios, indicate the net effect on income and other comprehensive income in each year 2 0 2 2 and 2 0 2 3 In each case, any unrealized decline in value below cost is expected to be recovered and is attributed to market factors a Trading securities AFS securities Fair value, end of 2 0 2 2 $ 7 6 , 0 0 0 $ 1 3 0 , 0 0 0 Selling price, 2 0 2 3 8 6 , 0 0 0 1 2 8 , 0 0 0 Note Use a negative sign with an answer to indicate the net effect amount decreases Income or OCI Income OCI End of 2 0 2 2 Answer 1 Answer 2 2 0 2 3 Answer 3 Answer 4 b Trading securities AFS securities Fair value, end of 2 0 2 2 $ 9 0 , 0 0 0 $ 1 1 2 , 0 0 0 Selling price, 2 0 2 3 8 4 , 0 0 0 1 3 6 , 0 0 0 Note Use a negative sign with an answer to indicate the net effect amount decreases Income or OCI Income OCI End of 2 0 2 2 Answer 5 Answer 6 A company purchases debt securities for $ 2 0 0 , 0 0 0 at the beginning of 2 0 2 2 It classifies $ 8 0 , 0 0 0 as trading securities and $ 1 2 0 , 0 0 0 as AFS securities It sells the securities in 2 0 2 3 Required For each of the following scenarios, indicate the net effect on income and other comprehensive income in each year 2 0 2 2 and 2 0 2 3 In each case, any unrealized decline in value below cost is expected to be recovered and is attributed to market factors a Note Use a negative sign with an answer to indicate the net effect amount decreases Income or OCl b Note Use a negative sign with an answer to indicate the net effect amount decreases Income or OCI

Question

A company purchases debt securities for $ 2 0 0 , 0 0 0 at the beginning of 2 0 2 2   It classifies $ 8 0 , 0 0 0 as trading securities and $ 1 2 0 , 0 0 0 as AFS securities   It sells the securities in 2 0 2 3   Required For each of the following scenarios, indicate the net effect on income and other comprehensive income in each year 2 0 2 2 and 2 0 2 3   In each case, any unrealized decline in value below cost is expected to be recovered and is attributed to market factors  a   Trading securities AFS securities Fair value, end of 2 0 2 2 $ 7 6 , 0 0 0 $ 1 3 0 , 0 0 0 Selling price, 2 0 2 3 8 6 , 0 0 0 1 2 8 , 0 0 0 Note  Use a negative sign with an answer to indicate the net effect amount decreases Income or OCI  Income OCI End of 2 0 2 2 Answer 1 Answer 2 2 0 2 3 Answer 3 Answer 4 b   Trading securities AFS securities Fair value, end of 2 0 2 2 $ 9 0 , 0 0 0 $ 1 1 2 , 0 0 0 Selling price, 2 0 2 3 8 4 , 0 0 0 1 3 6 , 0 0 0 Note  Use a negative sign with an answer to indicate the net effect amount decreases Income or OCI  Income OCI End of 2 0 2 2 Answer 5 Answer 6 A company purchases debt securities for $ 2 0 0 , 0 0 0 at the beginning of 2 0 2 2   It classifies $ 8 0 , 0 0 0 as trading securities and $ 1 2 0 , 0 0 0 as AFS securities   It sells the securities in 2 0 2 3   Required For each of the following scenarios, indicate the net effect on income and other comprehensive income in each year 2 0 2 2 and 2 0 2 3   In each case, any unrealized decline in value below cost is expected to be recovered and is attributed to market factors  a   Note  Use a negative sign with an answer to indicate the net effect amount decreases Income or OCl  b   Note  Use a negative sign with an answer to indicate the net effect amount decreases Income or OCI

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A company purchases debt securities for $ 2 0 0 , 0 0 0 at the beginning of 2 0 2 2 . It classifies

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