At December 31, Hull Corp. had the following debt securities that were purchased during the year, its first year of operations: Row A Row B Row C Held-for-trading: Security A Security B Totals Row D Available-for-sale: Security Y Security Z Totals Cost Fair value Unrealized gain (loss) $ 90,000 15,000 $105,000 ======== ======== $ 60,000 20,000 $ 80,000 $ 70,000 $ 80,000 90,000 45,000 $160,000 $125,000 ======== A. $60,000 B. $30,000 C. $25,000 D. $25,000 ======== At December 31, adjustments to fair value should be established with a corresponding charge against Income Stockholders' equity $(30,000) 5,000 $(25,000) $0 $45,000 $35,000 $0 ======== $ 10,000 (45,000) $(35,000) ========
At December 31, Hull Corp. had the following debt securities that were purchased during the year, its first year of operations: Row A Row B Row C Held-for-trading: Security A Security B Totals Row D Available-for-sale: Security Y Security Z Totals Cost Fair value Unrealized gain (loss) $ 90,000 15,000 $105,000 ======== ======== $ 60,000 20,000 $ 80,000 $ 70,000 $ 80,000 90,000 45,000 $160,000 $125,000 ======== A. $60,000 B. $30,000 C. $25,000 D. $25,000 ======== At December 31, adjustments to fair value should be established with a corresponding charge against Income Stockholders' equity $(30,000) 5,000 $(25,000) $0 $45,000 $35,000 $0 ======== $ 10,000 (45,000) $(35,000) ========
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:At December 31, Hull Corp. had the following debt securities that were purchased during the year, its first year of
operations:
Row A
Row B
Row C
Held-for-trading:
Security A
Security B
Totals
Row D
Available-for-sale:
Security Y
Security Z
Totals
Cost Fair value Unrealized gain (loss)
$ 90,000
$ 60,000
15,000
20,000
$105,000 $ 80,000
$ 70,000
$ 80,000
90,000
45,000
$160,000 $125,000
At December 31, adjustments to fair value should be established with a corresponding charge against
======
Income Stockholders' equity
A. $60,000
B. $30,000
C. $25,000
D. $25,000
$(30,000)
5,000
$(25,000)
$0
$45,000
$35,000
$0
$ 10,000
(45,000)
$(35,000)
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