On January 1, 2017, A Corp. had the following investments: During the year, A Corp. acquired M Co. stock for $1,000 and classified it as trading. At year-end, the M Co. stock has a fair market value of $1,200. The K Inc. investment on December 31 had a fair market value was $2,500. The S Co. investment had a December 31 market value of $3,500, and the G Inc. bonds had a December 31 market value of $9,850.
Required:
Indicate the balance sheet classification and where unrealized holding gains/losses would appear on the December
31, 2017 financial statements for each investment.

Question

On January 1, 2017, A Corp. had the following investments:  During the year, A Corp. acquired M Co. stock for $1,000 and classified it as trading. At year-end, the M Co. stock has a fair market value of $1,200. The K Inc. investment on December 31 had a fair market value was $2,500. The S Co. investment had a December 31 market value of $3,500, and the G Inc. bonds had a December 31 market value of $9,850.
Required:
Indicate the balance sheet classification and where unrealized holding gains/losses would appear on the December
31, 2017 financial statements for each investment.

Quizplus · Accepted Answer

The Answer of On January 1, 2017, A Corp. had the following investments:  During the year, A Corp. acquired M Co. stock for $1,000 and classified it as trading. At year-end, the M Co. stock has a fair market value of $1,200. The K Inc. investment on December 31 had a fair market value was $2,500. The S Co. investment had a December 31 market value of $3,500, and the G Inc. bonds had a December 31 market value of $9,850.
Required:
Indicate the balance sheet classification and where unrealized holding gains/losses would appear on the December
31, 2017 financial statements for each investment.

On January 1, 2017, a Corp