Question
Beresford Inc. purchased several investments in debt securities during 2017, its first year of operations. The following information pertains to these securities. The fluctuations in
Beresford Inc. purchased several investments in debt securities during 2017, its first year of operations. The following information pertains to these securities. The fluctuations in their fair values are not considered permanent.
| Held to Maturity Securities: | Fair Value 12/31/2017 | Fair Value 12/31/2018 | Amortized Cost 12/31/2017 | Amortized Cost 12/31/2018 |
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| ABC Co. Bonds | $ | 475,000 |
| $ | 500,000 |
| $ | 467,500 |
| $ | 460,000 |
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| Trading Securities: | Fair Value 12/31/2017 | Fair Value 12/31/2018 |
Cost |
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| DEF Co. Bonds | $ | 50,000 |
| $ | 59,500 |
| $ | 66,000 |
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| GEH Inc. Bonds | $ | 47,000 |
| $ | 67,000 |
| $ | 42,000 |
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| IJK Inc. Bonds | $ | 44,000 |
| $ | 38,500 |
| $ | 32,900 |
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Available for Sale Securities: | Fair Value 12/31/2017 | Fair Value 12/31/2018 |
Cost |
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| LMN Co. Bonds | $ | 230,500 |
| $ | 260,400 |
| $ | 240,000 |
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Required: What total unrealized holding gain/loss would Beresford report in its 2018 other comprehensive income with respect to these investments in debt securities?
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Intermediate Accounting
Authors: Loren A. Nikolai, John D. Bazley, Jefferson P. Jones
11th edition
978-0538467087, 9781111781262, 538467088, 1111781265, 978-0324659139
