Question
On December 31, 2019, GABM, Inc. reported its investment in trading securities at $554,000, it's fair value on that day. The portfolio originally cost $616,000.
On December 31, 2019, GABM, Inc. reported its investment in trading securities at $554,000, it's fair value on that day. The portfolio originally cost $616,000. On December 31, 2020, the fair value of the securities was $609,000. What will GABM, Inc. report on its 2020 income statement as a result of the change in fair value during the year?
| $7,000 | ||
| $55,000 | ||
| $62,000 | ||
| Nothing. This adjustment would be reported as Other Comprehensive Income. |
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Financial Accounting
Authors: David Spiceland
6th Edition
1260786528, 9781260786521
