Question:XYZ Company has three securities in its portfolio available for sale, as follows: Security 1: Beatty, Cost: $78,000, 12/31/06 Market Value: $93,600, 12/31/07 Market Value:$100,100 Security 2: Cole, Cost: $117,000, 12/31/06 Market Value: $120,900, 12/31/07 Market Value:$0 Security 3: Sells, Cost: $58,500, 12/31/06 Market Value: $53,500, 12/31/07 Market Value:$50,700 The Cole stock was sold in Year 2 for $127,400. Given the above information, which of the following statements is true?
A On its 12/31 Year 1 Balance Sheet, XYZ Company would report the Beatty stock at its cost of $78,000.
B On its Income Statement for the year ending 12/31 Year 1, XYZ Company would report an unrealized holding gain on the Beatty stock of $15,600.
C On its 12/31 Tear 1 Balance Sheet, XYZ Company would report an unrealized holding gain on the Beatty stock of $15,600 in a shareholders' equity account
D On its 12/31 Year 1 Balance Sheet, XYZ Company would report the Beatty stock at its cost of $78,000. and On its Income Statement for the year ending 12/31 Year 1, XYZ Company would report an unrealized holding gain on the Beatty stock of $15,600.
+ AnswerB
+ Explanation
+ Report
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