Sandhill Company's equity securities portfolio which is appropriately included in current assets is as follows: December 31, 2021 Cost Fair Value UnrealizedGain (Loss)Catlett Corp.$220000$183000$-37000Lyman, Inc.20900022500016000 $429000$408000$-21000Ignoring income taxes, what amount should be reported as a charge against income in Sandhill's 2021 income statement if 2021 is Sandhill's first year of operation?$37000 loss.$0.$21000 loss.$16000 gain.

Since the given securities are trading securities hence any unrealized gain or loss in respect of…

Answered: Sandhill Company's equity securities…

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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Sandhill Company's equity securities portfolio which is appropriately included in current assets is as follows:

		December 31, 2021
	Cost		Fair Value	Unrealized Gain (Loss)
Catlett Corp.	$220000	$183000	$-37000
Lyman, Inc.	209000	225000	16000
	$429000	$408000	$-21000

Ignoring income taxes, what amount should be reported as a charge against income in Sandhill's 2021 income statement if 2021 is Sandhill's first year of operation?

$37000 loss.

$0.

$21000 loss.

$16000 gain.

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