A nonprofit hospital purchased an equity security for $150,000 on September 2018. When it prepared its 2018 financial statements, the security had a fair value of $145,000. It sold the security for $160,000 in 2019. How would the sale of the security in 2019 be reported by the nonprofit hospital in its 2019 statement of operations?

Question

Quizplus · Accepted Answer

The FASB requires nonprofit hospitals to include a performance indicator (such as "revenues over expenses") in their statement of operations. Realized gains and losses on investments must be included in the performance indicator, but unrealized gains and losses on securities other than trading securities must be excluded from that measure.

A Nonprofit Hospital Purchased an Equity Security for $150,000 on September