On its December 31, 2020 balance sheet, Wildhorse Company appropriately reported a $10,000 debit balance in its Fair Value Adjustment account. There was no change during 2021 in the composition of Wildhorse’s portfolio of debt investments held as available-for-sale debt securities. The following information pertains to that portfolio:
On its December 31, 2020 balance sheet, Wildhorse Company appropriately reported a $10,000 debit balance in its Fair Value Adjustment account. There was no change during 2021 in the composition of Wildhorse’s portfolio of debt investments held as available-for-sale debt securities. The following information pertains to that portfolio:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On its December 31, 2020 balance sheet , Wildhorse Company appropriately reported a $10,000 debit balance in its Fair Value Adjustment account. There was no change during 2021 in the composition of Wildhorse’s portfolio of debt investments held as available-for-sale debt securities. The following information pertains to that portfolio:
The amount of unrealized loss to appear as a component of comprehensive income for the year ending December 31, 2021 is
| Security | Cost | Fair value at 12/31/21 | ||
|
X |
$148000 |
$187000 |
||
|
Y |
118000 |
103500 |
||
|
Z |
211000 | 161000 | ||
|
$477000
|
$451500
|
The amount of unrealized loss to appear as a component of comprehensive income for the year ending December 31, 2021 is
$24500.
$35500.
$39000.
$0.
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