Question
Stoll Company's long-term available-for-sale portfolio at the start of this year consists of the following. Available-for-Sale Securities Cost Fair Value Company A bonds $ 534,800
Stoll Company's long-term available-for-sale portfolio at the start of this year consists of the following.
| Available-for-Sale Securities | Cost | Fair Value |
|---|---|---|
| Company A bonds | $ 534,800 | $ 490,000 |
| Company B notes | 159,450 | 154,000 |
| Company C bonds | 662,300 | 645,620 |
Stoll enters into the following transactions involving its available-for-sale debt securities this year.
| January 29 | Sold one-half of the Company B notes for $78,930. |
|---|---|
| July 6 | Purchased Company X bonds for $120,400. |
| November 13 | Purchased Company Z notes for $267,300. |
| December 9 | Sold all of the Company A bonds for $517,700. |
Fair values at December 31 are B, $84,800 C, $604,800 X, $112,000 and Z, $270,000.
3. What amount of gains or losses on transactions relating to long-term investments in available-for-sale debt securities does Stoll report on its income statement for this year?
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Accounting Principles
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
10th Edition
1119491630, 978-1119491637, 978-0470534793
