McGinn Company purchased 10% of RJ Company's common stock during 2010 for $100,000.The 10% investment in RJ had a $90,000 fair value at the end of 2010 and a $105,000 fair value at the end of 2011.Which of the following statements is correct if McGinn classified the investment as a trading security and sold it at the beginning of 2012 for $102,000?
A) The 2012 realized loss reported on the income statement is $3,000.
B) The 2012 realized gain reported on the income statement is $2,000.
C) The 2012 unrealized gain reported on the income statement is $2,000.
D) The 2012 unrealized loss reported on the income statement is $3,000.
Correct Answer:
Verified
Q90: On January 31,2010,McBurger Corporation purchased the
Q91: Complete the following matrix by writing
Q92: Rye Company purchased 15% of Lena Company's
Q93: McGinn Company purchased 10% of RJ Company's
Q94: A.Discuss the similarities of accounting for available-for-sale
Q96: On January 1,2010,Presto Corporation purchased,as a
Q97: On March 1,2011,Young Company purchased the
Q98: McGinn Company purchased 10% of RJ Company's
Q99: On January 1,2010,Alden Company acquired 15,000
Q100: Orleans Corporation purchased 1,000,000 shares of Creole
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