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At the beginning of 2 0 1 9 , Able Company had the following portfolio of investments in trading securities ( all of which were
At the beginning of Able Company had the following portfolio of investments in trading securities all of which were acquired at par value:
Security Cost Fair Value
A $ $
B
Totals $ $
During the following transactions occurred:
May Purchased C debt securities at their par value for $
July Sold all of the A securities for $ plus interest of $
Dec. Received interest of $ on the B and C securities Additionally the following information was available:
Security
Fair Value
B $
C
Required:
Prepare journal entries to record the preceding information.
Next Level What justification does the FASB give for its treatment of unrealized holding gains and losses for trading securities
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