Question
Brief Exercise 12-6 Fair value option; available-for-sale securities [LO12-7] S&L Financial buys and sells securities that it typically classifies as available-for-sale. On December 27, 2013,
Brief Exercise 12-6 Fair value option; available-for-sale securities [LO12-7]
| S&L Financial buys and sells securities that it typically classifies as available-for-sale. On December 27, 2013, S&L purchased Coca-Cola common shares for $805,000 and sold the shares on January 3, 2014, for $809,000. At December 31, the shares had a fair value of $800,500. When it purchased the Coca-Cola shares, S&L Financial decided to elect the fair value option for this investment. |
| What pretax amounts did S&L include in its 2013 and 2014 earnings as a result of this investment? 2013...... (Gain, Loss, or No gain/loss in earnings) what is the pretax amount? 2014......(Gain, Loss, or No gain/loss in earnings) What is the pretax amount? Show work |
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Wiley Federal Government Auditing Laws Regulations Standards And Practices
Authors: Edward F. Kearney, Roldan Fernandez, Jeffrey W. Green, David M. Zavada
2nd Edition
1118555856, 978-1118555859
