mm Catlett Corp. 10. Kramer Company's trading securities murtfolin which is appropriately included in current assets is as follows: Dec 31, 2018 Dec. 31, 2018 2018 Amortized cost Fair value Unrealized (bonds were acquired gain (loss) at face value) $250,000 $205,000 S(45,000) Lyman, Inc. 245.000 265,000 20.000 S495.000 S470,000 (25.000) Ignoring income taxes, what amount should be reported as a charge against income in Kramer's 2018 income statement if 2018 is Kramer's first year of operation? a. SO. b. $20,000 c. S25,000. d. $45,000. 11. On its December 31, 2017, balance sheet, Trum Co, reported its investment in available-for- sale securities, which had amortized cost of $600,000, at fair value of $550,000. At December 31, 2018, the fair value of the securities was $585,000. What should Trum Co. report on its 2018 income statement as a result of the increase in fair value of the investments in 2018? a. SO. b. Unrealized loss of S15,000. c. Realized gain of S35,000. d. Unrealized gain of S35,000. 12. On September 1. the Consul Company acquired $10.000 face value, 8% bonds of Envoy Corporation at 104. The bonds were dated May 1 and mature in 5 years on April 30, with interest payable each October 31 and April 30. What entry should Consul make to record the purchase of the bonds? Investment in bonds S10,400 Interest receivable 266 Band was supposed to be issued on Cash $10,666 Mayl: b. Investment in bonds $10,666 There are 4 months between May - Cash $10,666 Septt 10.666 Investment in bond Accrued interest receivable 266 Accrued interest 10,400 Cash d. Investment in bonds $10,000 Premium on bonds 666 Cash $10,666 13. Cap Corp. reported accrued investment interest receivable of 538,000 and $46,500 at January 1 and December 31, Year 1, respectively. During Year 1, cash collections from the investments included the following: Interest collections $152.000 What amount should Cap report as interest revenue from investments for Year 1? a $160,500 Accrual basis accounting: b. $153.500 Collections $152,000 c. $152,000 d. $143,500