Michael Smith, a dealer in securities b
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:1. Michael Smith, a dealer in securities bought a security on June 1 of year 1 for $80. On December 31st of year 1, the fair market value of the security is $100.
a) What should Smith report in Year 1?
b) If Smith sells the security for $ 88 on July 10 in year 2, what should Smith report in year 2?
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