Question
Boulter, Inc. began business on January 1, 2016. At the end of December 2016, Boulter had the following investments in equity securities: Trading Available for
Boulter, Inc. began business on January 1, 2016. At the end of December 2016, Boulter had the following investments in equity securities:
| Trading | Available for Sale | |
| Cost | $60,000 | $110,000 |
| Fair value | 54,000 | 107,500 |
All declines in value are deemed to be temporary in nature. How should the corresponding losses be reflected in the financial statements at December 31, 2016?
| Income Statement | Accumulated Other Comprehensive Income in Shareholders' Equity | |
| a. | $8,500 | $0 |
| b. | $0 | $8,500 |
| c. | $6,000 | $2,500 |
| d. | $2,500 | $6,000 |
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Advanced Auditing And Assurance
Authors: Louise Kelly
1st Edition
978-1908199362
