At December 31, Hull Corp. had the following equity securities that were purchas

Question

At December 31, Hull Corp. had the following equity securities that were purchased during the year, its first year of operations: Fair Unrealized Cost value gain (loss) In Current Assets: Security A $ 90,000 $  60,000 $(30,000) Security B 15,000 20,000 5,000 Totals $105,000 $  80,000 $(25,000) In Noncurrent Assets: Security Y $ 70,000 $ 80,000 $ 10,000 Security Z 90,000 45,000 (45,000) Totals $160,000 $125,000 $(35,000) All changes in fair value are considered temporary. Security A is a trading security, and the other securities are available-for-sale securities. What amounts should be charged to earnings and other comprehensive income at December 31? Other Comprehensive Earnings Income A. $(25,000) $0 B. $(30,000) $(30,000) C. $(60,000) $0 D. $(25,000) $(30,000) Fair Cost value Security A Security B 5,000 Security Y $ 10,000 Security Z $0 $(30,000) $0 $(30,000) At December 31, Hull Corp. had the following equity securities that were purchased during the year, its first year of operations: Fair Unrealized Cost value gain (loss) In Current Assets: Security A $ 90,000 $  60,000 $(30,000) Security B 15,000 20,000 5,000 Totals $105,000 $  80,000 $(25,000) In Noncurrent Assets: Security Y $ 70,000 $ 80,000 $ 10,000 Security Z 90,000 45,000 (45,000) Totals $160,000 $125,000 $(35,000) All changes in fair value are considered temporary. Security A is a trading security, and the other securities are available-for-sale securities. What amounts should be charged to earnings and other comprehensive income at December 31? Other Comprehensive Earnings Income A. $(25,000) $0 B. $(30,000) $(30,000) C. $(60,000) $0 D. $(25,000) $(30,000)

Explanation / Answer

B. $(30,000) $(30,000)-correct answer-100% sure

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