Question
At the beginning of second quarter 2021, the bank buys a trading security for $150. At the end of the second quarter the price is
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At the beginning of second quarter 2021, the bank buys a trading security for $150. At the end of the second quarter the price is $170. The bank sells the security at $200 at the end of the third quarter 2021.
In net, over the third quarter (i.e. comparing situation at two moments in time: the end of the second quarter and the end of the third quarter), the retained profit ___________________ , the bank shareholders' equity ______________, and the capital reserve _____________________ .
A. increased by $30; decreased by $20; increased by $30
B. increased by $30; increased by $30; did not change
C. decreased by $50; did not change; decreased by $50;
D. increased by $30; did not change; decreased by $50
E. increased by $50; decreased by $20; increased by $50
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