Question
Moscoso Investments, Inc. bought several debt securities during 2019, its first year of in business. Consider the following information: Held to Maturity Securities: Fair Value
Moscoso Investments, Inc. bought several debt securities during 2019, its first year of in business. Consider the following information:
| Held to Maturity Securities: | Fair Value 12/31/2019 | Fair Value 12/31/2020 | Amortized Cost 12/31/2019 | Amortized Cost 12/31/2020 | ||||||||
| Alpha Co. Bonds | $ | 187,500 | $ | 200,000 | $ | 183,750 | $ | 180,000 | ||||
| Trading Securities: | Fair Value 12/31/2019 | Fair Value 12/31/2020 | Cost | |||||||||
| Beta Co. Bonds | $ | 24,000 | $ | 29,750 | $ | 33,000 | ||||||
| Theta Inc. Bonds | $ | 23,500 | $ | 38,500 | $ | 19,500 | ||||||
| Gamme Inc. Bonds | $ | 22,000 | $ | 19,250 | $ | 16,450 | ||||||
| Available for Sale Securities: | Fair Value 12/31/2019 | Fair Value 12/31/2020 | Cost | |||||||||
| Chi Co. Bonds | $ | 65,250 | $ | 75,200 | $ | 70,000 |
What would the balance be in Moscoso Investments' AOCI (Accumulated Other Comprehensive Income) with regard to these investments on its 12/31/2020 balance sheet (ignore taxes)? Hint: Consider which type of investment(s) records unrealized gains in OCI. For those investment type(s), what would be the net amount recorded in OCI as of 12-31-20?
Group of answer choices
None of these answer choices are correct.
$27,550.
$13,250.
$5,200.
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Managerial Accounting Tools For Business Decision Making
Authors: Jerry J Weygandt, Paul D Kimmel, Jill E Mitchell
9th Edition
1119754054, 9781119754053
