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 $ 900,000 $ 910,000 Security B 105,000 100,000 Totals $ 1,005,000 $ 1,010,000 Securities Available-for-Sale: Security C $ 700,000 $ 780,000 Security D 900,000 915,000 Totals $ 1,600,000 $ 1,695,000 Securities to Be Held-to-Maturity: Security E $ 490,000 $ 500,000 Security F 615,000 610,000 Totals $ 1,105,000 $ 1,110,000 No investments were sold during 2018. All securities except Security D and Security F are considered shortterm investments. None of the fair value changes is considered permanent. Required: Determine the following amounts at December 31, 2018. 1. Investments reported as current assets 2. Investments reported as noncurrent assets 3. Unrealized gain (or loss) component of income before taxes 4. Unrealized gain (or loss) component of accumulated other comprehensive income in shareholders’ equity
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 $ 900,000 $ 910,000
Security B 105,000 100,000
Totals $ 1,005,000 $ 1,010,000
Securities Available-for-Sale:
Security C $ 700,000 $ 780,000
Security D 900,000 915,000
Totals $ 1,600,000 $ 1,695,000
Securities to Be Held-to-Maturity:
Security E $ 490,000 $ 500,000
Security F 615,000 610,000
Totals $ 1,105,000 $ 1,110,000
No investments were sold during 2018. All securities except Security D and Security F are considered shortterm
investments. None of the fair value changes is considered permanent.
Required:
Determine the following amounts at December 31, 2018.
1. Investments reported as current assets
2. Investments reported as noncurrent assets
3. Unrealized gain (or loss) component of income before taxes
4. Unrealized gain (or loss) component of accumulated other comprehensive income in shareholders’ equity
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