Surface Company purchased 1,000 bonds of Slick Company in 2018 for $760 per bond and classified the investment as securities available-for-sale. Thevalue of these holdings was $260 per bond on December 31, 2019, and $444 per bond on December 31, 2020. During 2021, Surface sold all of its Slickbonds at $380 per bond.In its 2021 income statement, Surface would report:Multiple ChoiceA trading gain of $64,000 and an unrealized holding loss of $380,000.A loss on the sale of investments of $380,000.A recognition of unrealized holding losses of $260,000.A realized gain of $64,000.< Prev14 of 16Next >

Number of bonds purchased = 1000 Purchase price of bonds= $ 760 per bond Sale price of bonds = $ 380…

Surface Company purchased 1,000 bonds of Slick Company in 2018 for $760 per bond and classified the investment as securities available-for-sale. The value of these holdings was $260 per bond on December 31, 2019, and $444 per bond on December 31, 2020. During 2021, Surface sold all of its Slick ponds at $380 per bond. n its 2021 income statement, Surface would report: Multiple Choice A trading gain of $64,000 and an unrealized holding loss of $380,000. A loss on the sale of investments of $380,000. A recognition of unrealized holding losses of $260,000. A realized gain of $64,000.

Surface Company purchased 1,000 bonds of Slick Company in 2018 for $760 per bond and classified the investment as securities available-for-sale. The value of these holdings was $260 per bond on December 31, 2019, and $444 per bond on December 31, 2020. During 2021, Surface sold all of its Slick ponds at $380 per bond. n its 2021 income statement, Surface would report: Multiple Choice A trading gain of $64,000 and an unrealized holding loss of $380,000. A loss on the sale of investments of $380,000. A recognition of unrealized holding losses of $260,000. A realized gain of $64,000.

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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