Multiple Choice
Libby Company purchased equity securities for $100,000 and classified them as trading securities. At the end of the year, the fair value of the securities was $105,000. How should the investment be reported in the year-end financial statements?
A) The investment in trading securities would be reported in the balance sheet at its $100,000 cost.
B) The investment in trading securities would be reported in the balance sheet at its $105,000 fair value.
C) An unrealized holding gain would be reported in other comprehensive income.
D) Both b and c are correct.
Correct Answer:
Verified
Correct Answer:
Verified
Q9: One of the primary reasons for investing
Q10: Sports Spectacular purchased 1,000 shares of stock
Q14: Under the equity method,the investor includes in
Q15: Investments are reported at fair value when
Q20: Unrealized gains and losses from changes in
Q23: General Investment Co. (GIC) purchased bonds on
Q27: Sandy Sensations purchases twenty, $1,000, 7%, 10-year
Q31: Sandy Sensations purchases twenty, $1,000, 7%, 10-year
Q32: When the investor has significant influence,the receipt
Q36: When insignificant influence exists,the investment should be