Question
On its December 31, 2020, balance sheet, James Company reported its investment in equity securities, which had cost $600,000, at fair value of $560,000. At
On its December 31, 2020, balance sheet, James Company reported its investment in equity securities, which had cost $600,000, at fair value of $560,000. At December 31, 2021, the fair value of the securities was $575,000. What should James Company report on its 2021 income statement as a result of the increase in fair value of the investments in 2021?
| A. | Unrealized gain of $25,000. | |
| B. | Realized gain of $15,000. | |
| C. | Realized gain of $25,000. | |
| D. | Unrealized gain of $15,000. |
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Managerial Decision Modeling With Spreadsheets
Authors: Nagraj Balakrishnan, Barry Render, Jr. Ralph M. Stair
3rd Edition
136115837, 978-0136115830
