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Problem 15-3A Debt investments in available-for-sale securities; unrealized and realized gains and losses LO P3 [The following information applies to the questions displayed below.] Stoll Co.'s long-term available-for-sale portfolio at the start of this year consists of the following. Fair Value $492,000 150,000 Available-for-Sale Securities Cost Company A bonds Company B notes Company C bonds $533,600 159,310 661,900 641,950 Stoll enters into the following transactions involving its available-for-sale debt securities this year. Jan. 29 Sold one-half of the Company B notes for $78,430. July 6 Purchased bonds of Company X for $120,800. Nov. 13 Purchased notes of Company Z for $267,100. Dec. 9 Sold all of the bonds of Company A for $524,100. The fair values at December 31 are B, $82,500; C, $609,100; X, $118,000; and Z, $279,000. Problem 15-3A Part 3 3. What amount of gains or losses on transactions relating to long-term investments in available-for-sale debt securities does Stoll report on its income statement for this year? Loss

Problem 15-3A Debt investments in available-for-sale securities; unrealized and realized gains and losses LO P3 [The following information applies to the questions displayed below.] Stoll Co.'s long-term available-for-sale portfolio at the start of this year consists of the following. Fair Value $492,000 150,000 Available-for-Sale Securities Cost Company A bonds Company B notes Company C bonds $533,600 159,310 661,900 641,950 Stoll enters into the following transactions involving its available-for-sale debt securities this year. Jan. 29 Sold one-half of the Company B notes for $78,430. July 6 Purchased bonds of Company X for $120,800. Nov. 13 Purchased notes of Company Z for $267,100. Dec. 9 Sold all of the bonds of Company A for $524,100. The fair values at December 31 are B, $82,500; C, $609,100; X, $118,000; and Z, $279,000. Problem 15-3A Part 3 3. What amount of gains or losses on transactions relating to long-term investments in available-for-sale debt securities does Stoll report on its income statement for this year? Loss

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Problem 15-3A Debt investments in available-for-sale securities; unrealized and realized gains and losses LO P3

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[The following information applies to the questions displayed below.]
 
Stoll Co.'s long-term available-for-sale portfolio at the start of this year consists of the following.
 

Available-for-Sale Securities Cost Fair Value
Company A bonds $ 533,600   $ 492,000  
Company B notes   159,310     150,000  
Company C bonds   661,900     641,950  
 


Stoll enters into the following transactions involving its available-for-sale debt securities this year.
 

Jan.   29   Sold one-half of the Company B notes for $78,430.
July   6   Purchased bonds of Company X for $120,800.
Nov.   13   Purchased notes of Company Z for $267,100.
Dec.   9   Sold all of the bonds of Company A for $524,100.


The fair values at December 31 are B, $82,500; C, $609,100; X, $118,000; and Z, $279,000.

 

Problem 15-3A Part 3

3. What amount of gains or losses on transactions relating to long-term investments in available-for-sale debt securities does Stoll report on its income statement for this year?

**Problem 15-3A: Debt Investments in Available-for-Sale Securities; Unrealized and Realized Gains and Losses** **Scenario Overview:** [The following information applies to the questions displayed below.] Stoll Co.'s long-term available-for-sale portfolio at the start of this year consists of the following: | Available-for-Sale Securities | Cost | Fair Value | |-------------------------------|----------|------------| | Company A bonds | $533,600 | $492,000 | | Company B notes | 159,310 | 150,000 | | Company C bonds | 661,900 | 641,950 | **Transactions:** Stoll enters into the following transactions involving its available-for-sale debt securities this year. - **Jan. 29**: Sold one-half of the Company B notes for $78,430. - **July 6**: Purchased bonds of Company X for $120,800. - **Nov. 13**: Purchased notes of Company Z for $267,100. - **Dec. 9**: Sold all of the bonds of Company A for $524,100. **Fair Values at December 31:** - Company B: $82,500 - Company C: $609,100 - Company X: $118,000 - Company Z: $279,000 **Problem 15-3A Part 3** **Question:** What amount of gains or losses on transactions relating to long-term investments in available-for-sale debt securities does Stoll report on its income statement for this year? **Answer Box:** - **Loss: [ ]**
Transcribed Image Text:**Problem 15-3A: Debt Investments in Available-for-Sale Securities; Unrealized and Realized Gains and Losses** **Scenario Overview:** [The following information applies to the questions displayed below.] Stoll Co.'s long-term available-for-sale portfolio at the start of this year consists of the following: | Available-for-Sale Securities | Cost | Fair Value | |-------------------------------|----------|------------| | Company A bonds | $533,600 | $492,000 | | Company B notes | 159,310 | 150,000 | | Company C bonds | 661,900 | 641,950 | **Transactions:** Stoll enters into the following transactions involving its available-for-sale debt securities this year. - **Jan. 29**: Sold one-half of the Company B notes for $78,430. - **July 6**: Purchased bonds of Company X for $120,800. - **Nov. 13**: Purchased notes of Company Z for $267,100. - **Dec. 9**: Sold all of the bonds of Company A for $524,100. **Fair Values at December 31:** - Company B: $82,500 - Company C: $609,100 - Company X: $118,000 - Company Z: $279,000 **Problem 15-3A Part 3** **Question:** What amount of gains or losses on transactions relating to long-term investments in available-for-sale debt securities does Stoll report on its income statement for this year? **Answer Box:** - **Loss: [ ]**
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