Question
Novi purchased ABC bonds on 1/1/23.Data regarding these available-for-sale securities follow: Cost MV December 31, 2023 $150,000 $130,000 December 31, 2024 150,000 161,000 December 31,
Novi purchased ABC bonds on 1/1/23.Data regarding these available-for-sale securities follow:
Cost
MV
December 31, 2023
$150,000
$130,000
December 31, 2024
150,000
161,000
December 31, 2025
150,000
155,000
On 1/1/26, Novi sold $40,000 (cost) of the securities for $39,900.Market Value of the remaining securities at 12/31/26 was $112,000.
Proper accounting for investments and the related Adjusting Journal Entries will have what net effect on 2026 Comprehensive Income?
Select one:
a.$2,000
b.$7,100
c.$3,000
d.$3,100
e.$2,900
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Fundamental Accounting Principles
Authors: John J Wild, Ken Shaw
24th edition
1259916960, 978-1259916960
