Question
On february 12, 2018, lily corporation invested $1,320,00 in short term available-for-sale marketable securities. The market value of this investment was $1,400,000 at december 31,
On february 12, 2018, lily corporation invested $1,320,00 in short term available-for-sale marketable securities. The market value of this investment was $1,400,000 at december 31, 2018, but had slipped to $1,390,000 by December 2019.
In financial statements prepared on december 31, 2019, Lily corporation reports:
a. The asset investment in marketable securities at $1,320,000 with footnote disclosure of the market value of $1,400,000.
b. The asset investment in marketable securities at $1,390,000 and a $70,000 gain recognized in the income statement.
c.The asset investment in marketable securities at $1,390,000 and a $70,000 unrealized holding gain included in total stockholders equity.
d.The asset investment in marketable securities at $1,400,000, and a $80,000 unrealized holding gain included in total stockholders equity.
International standards require that goodwill "
a. be capitalized and amortized over 20 years or less.
b. be capitalized and amortized over 40 years or less.
c. be capitalized and reviewed annually and its value should be adjusted if impaired.
d. be expensed immediately.
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