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On January 1, 2016, a company's balance sheet reports its investments in financial instruments as follows: Assets Investment in trading securities.. Investment in AFS
On January 1, 2016, a company's balance sheet reports its investments in financial instruments as follows: Assets Investment in trading securities.. Investment in AFS securities. Investment in HTM securities... Equity Accumulated other comprehensive income: Unrealized gains (losses) on AFS securities.. $160,000 100,000 207,544 $ 4,000 itional information: a. The HTM securities are $200,000 face value debt securities purchased on January 1, 2014, at a yield of 4%. The securities have a 4-year total life and pay interest annually on December 31, at a coupon rate of 6%. b. The trading securities on hand on January 1 were sold in 2016 for $180,000. C. More trading securities were purchased for $100,000. They are still on hand at December 31, 2016, and have a fair value of $125,000. d. AFS securities, originally purchased for $26,000 with a carrying value of $25,000 as of January 1, 2016. were sold for $29,000. e. AFS securities on hand at December 31, 2016, have a fair value of $81,000. The total nin 4. What is the amount of the net gain related to AFS securities reported on the 2016 Statement of Comprehen- sive Income? a. $1,000 b. $5,000 c. $6,000 d. $7,000 LC
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