The following information relates to Bower Company's short-term investment in equity securities available for sale at the end of 2013 and 2014 (in 000s): Bower's net realized and unrealized gains and losses for 2014,respectively,would be

Question

The following information relates to Bower Company's short-term investment in equity securities available for sale at the end of 2013 and 2014 (in 000s):  Bower's net realized and unrealized gains and losses for 2014,respectively,would be

Quizplus · Accepted Answer

To calculate net realized and unrealized gain or loss, we need to take into account the cost, fair value, realized gains/losses, and unrealized gains/losses. Using the table provided, we can calculate the following:

At the end of 2013:
Cost = $30
Fair value = $32
Unrealized gain = $2

At the end of 2014:
Cost = $30
Fair value = $46
Realized gain = $0
Unrealized loss = -$16

To calculate the net realized and unrealized gains and losses for 2014, we need to add the realized gain ($0) and the unrealized loss (-$16), which gives us a total of -$16. Therefore, the answer is B: $2 realized loss; $16 unrealized loss.

The Following Information Relates to Bower Company's Short-Term Investment in Equity