Question
At December 31, 2018, Jeter Corporation had the following debt securities that were purchased during 2018, its first year of operation: Fair Unrealized Cost Value
At December 31, 2018, Jeter Corporation had the following debt securities that were purchased during 2018, its first year of operation:
Fair Unrealized
Cost Value Gain (Loss)
Trading Securities:
Security A $ 85,000 $ 65,000 $(20,000)
Security B 15,000 20,000 5,000
Totals $100,000 $ 85,000 $(15,000)
Available-for-Sale Securities:
Security Y $ 70,000 $ 80,000 $ 10,000
Security Z 85,000 55,000 (30,000)
Totals $155,000 $135,000 $(20,000)
All market declines are considered temporary. Fair value adjustments at December 31, 2018 should be established with a corresponding charge against
Income Stockholders' Equity
a. $40,000 $ 0
b. $25,000 $30,000
c. $15,000 $20,000
d. $15,000 $ 0
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