On January 1, 2014, A Corp. had the following investments: During the year, A Corp. acquired for trading M Co. stock for $1,000. At year-end, the stock has a fair market value of $1,200. The K Inc. investment was transferred from AFS to trading on December 31 when the fair market value was $2,500. The S Co. investment had a December 31 market value of $3,500. The G Inc. bonds had a fair market value on December 31 of $9,850.
Required:
Indicate the balance sheet classification, valuation amount(s) and where unrealized holding gains/losses would appear on the December 31, 2014 financial statements for each investment.

Question

On January 1, 2014, A Corp. had the following investments:  During the year, A Corp. acquired for trading M Co. stock for $1,000. At year-end, the stock has a fair market value of $1,200. The K Inc. investment was transferred from AFS to trading on December 31 when the fair market value was $2,500. The S Co. investment had a December 31 market value of $3,500. The G Inc. bonds had a fair market value on December 31 of $9,850.
Required:
Indicate the balance sheet classification, valuation amount(s) and where unrealized holding gains/losses would appear on the December 31, 2014 financial statements for each investment.

Quizplus · Accepted Answer

The Answer of On January 1, 2014, A Corp. had the following investments:  During the year, A Corp. acquired for trading M Co. stock for $1,000. At year-end, the stock has a fair market value of $1,200. The K Inc. investment was transferred from AFS to trading on December 31 when the fair market value was $2,500. The S Co. investment had a December 31 market value of $3,500. The G Inc. bonds had a fair market value on December 31 of $9,850.
Required:
Indicate the balance sheet classification, valuation amount(s) and where unrealized holding gains/losses would appear on the December 31, 2014 financial statements for each investment.

On January 1, 2014, a Corp