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Amacon Corporation Has the Following Investments at December 31, 2020

Question 73

Multiple Choice

Amacon Corporation has the following investments at December 31, 2020:
 Historical cost  Fair value  Sept 30,2019 Fair value  Sept 30, 2020  Fair value  Dec 31, 2020  Shares of DEF $25,000$15,000$25,000$30,000 Bonds of Brooke  (purchased at par value)  10,00012,00011,00012,500 Shares of CooksTown 12,00018,00016,00016,000 Shares of Daisy 18,00016,50019,50020,500\begin{array}{|l|r|r|r|r|}\hline & \text { Historical cost } & \begin{array}{r}\text { Fair value } \\\text { Sept } 30,2019\end{array} & \begin{array}{r}\text { Fair value } \\\text { Sept 30, 2020 }\end{array} & \begin{array}{r}\text { Fair value } \\\text { Dec 31, 2020 }\end{array} \\\hline \text { Shares of DEF } & \$ 25,000 & \$ 15,000 & \$ 25,000 & \$ 30,000 \\\hline \begin{array}{l}\text { Bonds of Brooke } \\\text { (purchased at par value) }\end{array} &10,000 &12,000 & 11,000 & 12,500 \\\hline \text { Shares of CooksTown } & 12,000 & 18,000 & 16,000 & 16,000 \\\hline \text { Shares of Daisy } & 18,000 & 16,500 & 19,500 & 20,500 \\\hline\end{array}

-According to the above table.Amacon, whose year-end is Sept. 30, purchased the share of Daisy on January 1, 2019. If Amacon irrevocably elected to classify its investment in Daisy at fair value through OCI, what amount will be reported in other comprehensive income at September 30, 2020?


A) $1,500 gain.
B) $2,500 gain.
C) $3,000 gain.
D) $19,500

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