Question
Deutsch Imports has three securities in its available-for-sale investment portfolio. Information about these securities is as follows: Market Value Security Cost 12/31/Year 1 12/31/Year 2
Deutsch Imports has three securities in its available-for-sale investment portfolio. Information about these securities is as follows: Market Value Security Cost 12/31/Year 1 12/31/Year 2 NCB $ 78,000 $ 93,600 $ 100,000 TRR $ 117,000 $ 120,000 $ 0 Enson $ 58,500 $ 53,000 $ 50,700 TRR was sold in Year 2 for $127,400. Which of the following statements is correct? On its 12/31/Year 2 balance sheet, Deutsch should report the NCB stock at its fair value of $100,000. On its 12/31/Year 2 balance sheet, Deutsch should report an unrealized holding gain on the NCB stock of $22,000 in stockholders equity. On its income statement for the year ending December 31, Year 2, Deutsch should report an unrealized holding gain on the NCB stock of $22,000. I only is correct. I and II only are correct. I and III only are correct. None of the listed answers is correct.nbsp;
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