Nevill Corp invests in short term investments.The following information is available about its investments at December 31,2016:

If Nevill accounts for these at fair value through OCI investments,what is the amount of gain/loss to be recorded in fiscal 2016 comprehensive income?
A)A loss of $4,000.
B)A gain of $4,000.
C)A loss of $8,000.
D)A gain of $8,000.

Question

Nevill Corp invests in short term investments.The following information is available about its investments at December 31,2016:

If Nevill accounts for these at fair value through OCI investments,what is the amount of gain/loss to be recorded in fiscal 2016 comprehensive income?
A)A loss of $4,000. 
B)A gain of $4,000. 
C)A loss of $8,000. 
D)A gain of $8,000.

Quizplus · Accepted Answer

A)(40,000 + 30,000 + 80,000 - 36,000 - 26,000 - 84,000)= 4,000 loss booked to OCI (not net income)

Nevill Corp Invests in Short Term Investments