Following is a portion of the investments footnote from Red Barron Life Insurance's 2016 annual report. Investment earnings are a crucial component of the financial performance of insurance companies such as Red Barron Life Insurance, and investments comprise a large part of Red Barron's assets. Red Barron accounts for its bond investments as available-for-sale securities.
A. What amount does Red Barron report for bond investments on its balance sheets for 2016?
B. What are the net unrealized gains (losses) for 2016? How did these unrealized gains (losses) affect the company's reported income in 2016?
C. What is the difference between realized and unrealized gains and losses? Are realized gains and losses treated differently in the income statement than unrealized gains and losses?

Question

Following is a portion of the investments footnote from Red Barron Life Insurance's 2016 annual report. Investment earnings are a crucial component of the financial performance of insurance companies such as Red Barron Life Insurance, and investments comprise a large part of Red Barron's assets. Red Barron accounts for its bond investments as available-for-sale securities.
  A. What amount does Red Barron report for bond investments on its balance sheets for 2016?
B. What are the net unrealized gains (losses) for 2016? How did these unrealized gains (losses) affect the company's reported income in 2016?
C. What is the difference between realized and unrealized gains and losses? Are realized gains and losses treated differently in the income statement than unrealized gains and losses?

Quizplus · Accepted Answer

The Answer of Following is a portion of the investments footnote from Red Barron Life Insurance's 2016 annual report. Investment earnings are a crucial component of the financial performance of insurance companies such as Red Barron Life Insurance, and investments comprise a large part of Red Barron's assets. Red Barron accounts for its bond investments as available-for-sale securities.
  A. What amount does Red Barron report for bond investments on its balance sheets for 2016?
B. What are the net unrealized gains (losses) for 2016? How did these unrealized gains (losses) affect the company's reported income in 2016?
C. What is the difference between realized and unrealized gains and losses? Are realized gains and losses treated differently in the income statement than unrealized gains and losses?

Following Is a Portion of the Investments Footnote from Red