er Corporation purchased the as securitiesfllowing debt securities during 2018 a
ID: 2340061 • Letter: E
Question
er Corporation purchased the as securitiesfllowing debt securities during 2018 and properly debt Security Fair Value 12/31/2018 Cost $40,000 $70,000 $2 $49,000 $66,000 $39,000 Demeter did not own any other securities. How much of an unrealized gain/(loss) will be the investmentseter Corporation in the December 31, 2018 income statement related to a) $ 20,000. b) S o. c) $ (4,000). d) $ 16,000. Use the following information to answer questions 15 and 16. Hades Inc. purchased several debt investment securities during 2017, its first year of values are not considered permanent. operations. The following information pertains to these securities. The fluctuations in their fair Fair Value $400,000 Fair Value Meld to Maturity:ATH/207 2734/2012/3/2os7 12/201 Amort. Cost Amort. Cost $375,000 Fair Value ABC Co. Bonds $367,500 $360,000 Fair Value Cost $66,000 $39,000 $32,900 Cost Trading: 12/31/2017 12/31/2018 $48,000 $47,000 $44,000 Fair Value $59,500 $77,000 $38,500 Fair Value DEF Co. Stock GEH Inc. Stock UK Inc. Stock Available for Sale: LMN Co. Stock 12/31/2017 12/31/2018 $150,400 $140,000 $130,500Explanation / Answer
14. An unrealized gain of $16000 would be reported by demeter corporation on December 31, 2018 for securities i.e. difference between fair market value and cost of securities. unrealized gain would be reported under "other comprehensive income"
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