At December 31, 2018, Hull-Meyers Corp. had the following investments that were

Question

At December 31, 2018, Hull-Meyers Corp. had the following investments that were purchased during 2018, its first year of operations Cost Fair Value Trading Securities: Security A Security B $ 960,e00 975,000 165,000 159,486 Totals Securities Available-for-Sale: Security Security D $1,125,000 $1,134,400 $ 760,e00 834,00e 960,000 977,40e $1,720,e00 $1, 811,400 Totals Securities to Be Held-to-Maturity: Security E Security F Totals $ 550,000 561,200 675,000 669,800 $1,225,000 $1, 231,000 No investments were sold during 2018. All securities except Security D and Security F are considered short-term investments. None of the fair value changes is considered permanent. Required Compute the below table to calculate the following. (Amounts to be deducted should be indicated with a minus sign.) Re Unrealized gain (loss Other Total Noncurrent Net Income Comprehensive Comprehensive Current assets assets Income (OCI) Income Trading Securities Security A Security B 0 Securities Available-for-Sale Security C Security D Securities to be Held-to-Maturity 0 Security E Security F Totals$

Explanation / Answer

Trading Securities: Fair Value adjustment done through Income Statement

Held-for Trading: Fair Value Adjustment is done through Other Comprehensive

Held-till Maturity: Fair Value adjustment is not done as the intention is to hold until maturity.

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Cost Fair Value Gain/(Loss) Security A $        960,000 $ 975,000 $      15,000 Security B $        165,000 $ 159,400 $      (5,600) Security C $        760,000 $ 834,000 $      74,000 Security D $        960,000 $ 977,400 $      17,400 Security E $        550,000 $ 561,200 $      11,200 Security F $        675,000 $ 669,800 $      (5,200)

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