Continental Bank, a nationwide banking company, owns many types of investments.Continental paid $550,000 for equity securities on December 5. Continental owns less than10% of the stock of the companies in which it invests. Two weeks later, Continental received a$37,000 cash dividend. On December 31, these equity securities were quoted at a market priceof $554,000. Continental’s December income statement would include ana. unrealized loss of $4,000.b. unrealized gain of $41,000.c. unrealized gain of $4,000.d. unrealized loss of $41,000.E-Q-33. Refer to the Continental data in E-Q-32. On December 31, Continental’s balancesheet should reporta. dividend revenue of $37,000.b. investment in equity securities of $554,000.c. investment in equity securities of $550,000.d. an unrealized gain of $4,000.
Continental Bank, a nationwide banking company, owns many types of investments.
Continental paid $550,000 for equity securities on December 5. Continental owns less than
10% of the stock of the companies in which it invests. Two weeks later, Continental received a
$37,000 cash dividend. On December 31, these equity securities were quoted at a market price
of $554,000. Continental’s December income statement would include an
a. unrealized loss of $4,000.
b. unrealized gain of $41,000.
c. unrealized gain of $4,000.
d. unrealized loss of $41,000.
E-Q-33. Refer to the Continental data in E-Q-32. On December 31, Continental’s balance
sheet should report
a. dividend revenue of $37,000.
b. investment in equity securities of $554,000.
c. investment in equity securities of $550,000.
d. an unrealized gain of $4,000.
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