McGinn Company purchased 10% of RJ Company's common stock during 20X2 for $100,000. The 10% investment in RJ had a $90,000 fair value at the end of 20X2 and a $105,000 fair value at the end of 20X3.
-Which of the following statements is correct if McGinn classified the investment as a trading security and sold it at the beginning of 20X4 for $102,000?
A) The 20X4 realized loss reported on the statement of earnings is $3,000.
B) The 20X4 realized gain reported on the statement of earnings is $2,000.
C) The 20X4 unrealized gain reported on the statement of earnings is $2,000.
D) The 20X4 unrealized loss reported on the statement of earnings is $3,000.
Correct Answer:
Verified
Q25: Rye Company purchased 15% of Lena Company's
Q26: McGinn Company purchased 10% of RJ Company's
Q27: Heartfelt Company owns a 40% interest in
Q28: At the beginning of 20X1, Manowar Ltd.
Q30: Phillips Corporation purchased 1,000,000 shares of Martin
Q31: Rye Company purchased 15% of Lena Company's
Q32: Phillips Corporation purchased 1,000,000 shares of Martin
Q33: Rye Company purchased 15% of Lena Company's
Q34: At the beginning of 20X1, Manowar Ltd.
Q48: Which of the following is true about
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents