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please solve the required questions 2. Investments in Securities (9 points): As of January 18, 2013, Zenith Corporation had the following information about its portfolio
please solve the required questions
2. Investments in Securities (9 points): As of January 18, 2013, Zenith Corporation had the following information about its portfolio of marketable securities that have been classified as "FVOCI" securities: Cost of securities (purchased in 2009): $200,000 Market value of the securities on 12/31/2009: $240,000 12/31/2010: $160,000 12/31/2011: $ 90,000 12/31/2012: $ 18,000 On January 19, 2013, the company decided to sell the entire portfolio for $12,000. Required: a. What effect did the ownership of the securities have on Zenith's net income for each year from 2009 through 2012? (2 points) b. What effect did the ownership of the securities have on Zenith's equity as of December 31, 2012? (3 points) c. How would the sale of the securities affect Zenith's net income, assets and equity, and cash flows for 2013? State the dollar amounts. (4 points) Step by Step Solution
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