Question
Elias Corporation purchased an available-for-sale investment in 2,000 shares of Southwest Supplies stock for $20 per share. On the next balance-sheet date, Southwest Supplies stock
Elias Corporation purchased an available-for-sale investment in 2,000 shares of Southwest Supplies stock for $20 per share. On the next balance-sheet date, Southwest Supplies stock is quoted at $22 per share. Elias' income statement should report:
A. unrealized gain of $4,000. B. investments of $40,000. C. unrealized loss of $4,000. D. nothing because Elias hasn't sold the investment.
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Auditing Cases An Interactive Learning Approach
Authors: Mark S. Beasley, Frank A. Buckless, Steven M. Glover, Douglas F. Prawitt
4th Edition
0132423502, 978-0132423502
