Question
Software, Inc. maintained a large investment in marketable securities valued at approximately $42 billion as of the beginning of the year. During the year, the
Software, Inc. maintained a large investment in marketable securities valued at approximately $42 billion as of the beginning of the year. During the year, the securities produced investment income (dividends and interest income) totaling $2.5 billion. At year-end, the portfolio of marketable securities had appreciated to $45.5 billion.
Calculate the pre-tax income statement effect of the marketable securities if
- The entire portfolio is classified as trading securities: $______ANSWER _______billion
- The entire portfolio is classified as available-for-sale securities: $_______ ANSWER ______billion
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Advanced Accounting
Authors: Debra C. Jeter, Paul Chaney
5th Edition
1118022297, 9781118214169, 9781118022290, 1118214161, 978-1118098615
