Question
Beresford Inc. purchased several investment securities during 2012, its first year of operations. The following information pertains to these securities. The fluctuations in their fair
Beresford Inc. purchased several investment securities during 2012, its first year of operations. The following information pertains to these securities. The fluctuations in their fair values are not considered permanent.
| Fair Value | Fair Value | Amortized Cost | Amortized Cost | |
| Held to Maturity Securities | 12/31/2012 | 12/31/2013 | 12/31/2012 | 12/31/2013 |
| ABC Co.Bonds | $375,000 | $400,000 | $367,500 | $360,000 |
| Fair Value | Fair Value | ||
| Trading Securities | 12/31/2012 | 12/31/2013 | Cost |
| DEF Co.Stock | $48,000 | $59,500 | $66,000 |
| GEH Inc.Stock | $47,000 | $77,000 | $39,000 |
| IJK Inc. Stock | $44,000 | $38,500 | $32,900 |
| Fair Value | Fair Value | ||
| Available for Sale Securities: | 12/31/2012 | 12/31/2013 | Cost |
| LMN co. Stock | $130,500 | $150,400 | $140,000 |
A. What balance sheet amount would Beresford report for its total investment securities at 12/31/2012?
B. What would be the balance in Beresford's accumulated other comprehensive income with respect to these investments in its 12/31/2013 balance sheet (ignore taxes)?
C. What total unrealized holding gain would Beresford report in its 2013 income statement relative to its investment securities?
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Financial Accounting Tools for business decision making
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso
6th Edition
978-1119191674, 047053477X, 111919167X, 978-0470534779
