Question
Beresford Inc. purchased several investment securities during 2005, its first year of operations. The following information pertains to these securities. The fluctuations in their fair
Beresford Inc. purchased several investment securities during 2005, its first year of operations. The following information pertains to these securities. The fluctuations in their fair values are not considered permanent.
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| Fair Value | Fair Value | Amortized | Amortized |
| Held to Maturity Securities: | 12/31/05 | 12/31/06 | Cost 12/31/05 | Cost 12/31/06 |
| ABC Co. Bonds | $375,000 | $400,000 | $367,500 | $360,000 |
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| Fair Value | Fair Value | Cost |
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| Trading Securities: | 12/31/05 | 12/31/06 | x |
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| DEF Co. Stock | $48,000 | $59,500 | $66,000 |
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| GEH Inc. Stock | $47,000 | $77,000 | $39,000 |
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| IJK Inc. Stock | $44,000 | $38,500 | $32,900 |
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| Fair Value | Fair Value | Cost |
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| Available for Sale Securities: | 12/31/05 | 12/31/06 | x |
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| LMN Co. Stock | $130,500 | $150,400 | $140,000 |
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What holding gain would Beresford report in a separate part of shareholders' equity in its 12/31/06 balance sheet? $55,100 $26,500 $10,400 None of the above is correct.
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Low Income Housing Tax Credit IRS Audit Techniques Guide
Authors: Internal Revenue Service
1st Edition
978-1304135087
