Dolphin Company purchased 10,000 Shark Company bonds in 2018 for $57 per bond and classified the investment as securities available-for-sale. The value of the Shark investment was $82 per bond on December 31, 2019, and $101 per bond on December 31, 2020. During 2021, Dolphin sold all of its Shark investment at $141 per bond. In its 2021 income statement, Dolphin would report: Multiple Choice A gain of $1,280,000. A gain of $840,000. A gain of $400,000. A gain of $440,000.

Dolphin Company purchased 10,000 Shark Company bonds in 2018 for $57 per bond and classified the investment as securities available-for-sale. The value of the Shark investment was $82 per bond on December 31, 2019, and $101 per bond on December 31, 2020. During 2021, Dolphin sold all of its Shark investment at $141 per bond. In its 2021 income statement, Dolphin would report: Multiple Choice A gain of $1,280,000. A gain of $840,000. A gain of $400,000. A gain of $440,000.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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