Question
Beresford Inc. purchased several investments in debt securities during 2020, its first year of operations. The following information pertains to these securities. The fluctuations in
Beresford Inc. purchased several investments in debt securities during 2020, 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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| Held-to-Maturity Securities: | Fair Value 12/31/2020 | Fair Value 12/31/2021 | Amortized Cost 12/31/2020 | Amortized Cost 12/31/2021 | ||||||||
| ABC Co. Bonds | $ | 389,000 |
| $ | 414,000 |
| $ | 381,500 |
| $ | 374,000 |
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| Trading Securities: | Fair Value 12/31/2020 | Fair Value 12/31/2021 | Cost |
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| DEF Co. Bonds | $ | 59,000 |
| $ | 70,000 |
| $ | 75,400 |
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| GEH Inc. Bonds | $ | 61,000 |
| $ | 91,000 |
| $ | 53,000 |
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| IJK Inc. Bonds | $ | 58,000 |
| $ | 52,500 |
| $ | 46,900 |
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| Available-for-Sale Securities: | Fair Value 12/31/2020 | Fair Value 12/31/2021 | Cost |
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| LMN Co. Bonds | $ | 153,400 |
| $ | 166,700 |
| $ | 154,000 |
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What would be the balance in Beresford's accumulated other comprehensive income with respect to these investments in its 12/31/2021 balance sheet (ignore taxes)?
Multiple Choice
$19,900.
None of these answer choices are correct.
$580,700.
$12,700.
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Auditing A Practical Approach
Authors: Robyn Moroney, Fiona Campbell, Jane Hamilton, Valerie Warren
3rd Canadian edition
1-119-40285-5, 111940276X, 978-1119566007
