S&L Financial buys and sells securities which it classifies as available-for-sale. Assume that on December 27, 2024, S&L purchased Coca-Cola bonds at par for $760,000 and sold the bonds on January 3, 2025, for $764,000. At December 31, the bonds had a fair value of $757,000, and S&L has the intent and ability to hold the investment until fair value recovers. What pretax amounts did S&L include in its 2024 and 2025 net income as a result of this investment? Note: Enter all amounts as positive values. 2024 Gain 2025 Pretax amount
S&L Financial buys and sells securities which it classifies as available-for-sale. Assume that on December 27, 2024, S&L purchased Coca-Cola bonds at par for $760,000 and sold the bonds on January 3, 2025, for $764,000. At December 31, the bonds had a fair value of $757,000, and S&L has the intent and ability to hold the investment until fair value recovers. What pretax amounts did S&L include in its 2024 and 2025 net income as a result of this investment? Note: Enter all amounts as positive values. 2024 Gain 2025 Pretax amount
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:S&L Financial buys and sells securities which it classifies as available-for-sale. Assume that on December 27, 2024, S&L purchased Coca-Cola bonds at par for $760,000 and sold the bonds
on January 3, 2025, for $764,000. At December 31, the bonds had a fair value of $757,000, and S&L has the intent and ability to hold the investment until fair value recovers.
What pretax amounts did S&L include in its 2024 and 2025 net income as a result of this investment?
Note: Enter all amounts as positive values.
2024 Gain
2025
Pretax amount
Transcribed Image Text:S&L Financial buys and sells securities that it typically classifies as available-for-sale. Assume that on December 27, 2024, S&L purchased Coca-Cola bonds at par for $875,000 and sold the
bonds on January 3, 2025, for $881,500. At December 31, the bonds had a fair value of $873,000. When it purchased the Coca-Cola bonds, S&L Financial decided to elect the fair value
option for this investment.
What pretax amounts did S&L include in its 2024 and 2025 net income as a result of this investment (ignoring interest)?
Note: Enter all amounts as positive values.
2024
2025
Pretax amount
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