On January 1, 2016, a company's balance sheet reportsits investments in debt securities as follows:AssetsInvestment in trading securitiesInvestment in AFS securitiesInvestment in HTM securitiesEquityAccumulated other comprehensive income:Unrealized gains (losses) on AFS securitiesAdditional information:a. The HTM securities are $210,000 face valuesecurities purchased on January 1, 2014, at a yield of4%. The securities have a 4-year total life and payinterest annually on December 31, at a coupon rate of6%.$165,00095,000217,922$4,500b. The trading securities on hand on January 1 weresold in 2016 for $185,000.c. More trading securities were purchased for$105,000. They are still on hand at December 31, 2016,and have a fair value of $120,000.d. AFS securities, originally purchased for $27,000 witha carrying value of $24,000 as of January 1, 2016, weresold for $32,000.e. AFS securities on hand at December 31, 2016, have afair value of $85,000$20,000$15,000$35,000$54,000The total gain on trading securities reported on the2016 income statement is

Investment in Debt Securities: The owners of financial instruments referred to as debt securities…

On January 1, 2016, a company's balance sheet reports its investments in debt securities as follows: Assets Investment in trading securities Investment in AFS securities Investment in HTM securities $165,000 95,000 217,922 Equity Accumulated other comprehensive income: Unrealized gains (losses) on AFS securities Additional information: a. The HTM securities are $210,000 face value securities purchased on January 1, 2014, at a yield of 4%. The securities have a 4-year total life and pay interest annually on December 31, at a coupon rate of 6%. $4,500 b. The trading securities on hand on January 1 were sold in 2016 for $185,000. c. More trading securities were purchased for $105,000. They are still on hand at December 31, 2016, and have a fair value of $120,000. d. AFS securities, originally purchased for $27,000 with a carrying value of $24,000 as of January 1, 2016, were sold for $32,000. e. AFS securities on hand at December 31, 2016, have a fair value of $85,000 $20,000 $15,000 $35,000 $54,000 The total gain on trading securities reported on the 2016 income statement is

On January 1, 2016, a company's balance sheet reports its investments in debt securities as follows: Assets Investment in trading securities Investment in AFS securities Investment in HTM securities $165,000 95,000 217,922 Equity Accumulated other comprehensive income: Unrealized gains (losses) on AFS securities Additional information: a. The HTM securities are $210,000 face value securities purchased on January 1, 2014, at a yield of 4%. The securities have a 4-year total life and pay interest annually on December 31, at a coupon rate of 6%. $4,500 b. The trading securities on hand on January 1 were sold in 2016 for $185,000. c. More trading securities were purchased for $105,000. They are still on hand at December 31, 2016, and have a fair value of $120,000. d. AFS securities, originally purchased for $27,000 with a carrying value of $24,000 as of January 1, 2016, were sold for $32,000. e. AFS securities on hand at December 31, 2016, have a fair value of $85,000 $20,000 $15,000 $35,000 $54,000 The total gain on trading securities reported on the 2016 income statement is

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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