Question
Pashmina Tea House purchased debt securities during 2021 and classified them as securities available-for-sale: Security Cost Fair Value, 12/31/2021 A $ 40,000 $ 49,000 B
Pashmina Tea House purchased debt securities during 2021 and classified them as securities available-for-sale:
| Security | Cost | Fair Value, 12/31/2021 |
| ||||||
| A |
| $ | 40,000 |
|
| $ | 49,000 |
| |
| B |
|
| 70,000 |
|
|
| 66,000 |
| |
| C |
|
| 28,000 |
|
|
| 39,000 |
| |
All declines are considered to be temporary. How much gain will be reported by Pashmina Tea House in the December 31, 2021, income statement relative to the portfolio?
A) $0. B) $16,000 C) $20,000
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Auditing And EDP Objective Questions And Explanations
Authors: Irvin N Gleim, William A. Hillison
4th Edition
0917537432, 978-0917537431
