S&L Financial buys and sells securities expecting to earn profits on short-term differences in price. On December 27, 2018, S&L purchased Coca-Cola bonds at par for $875,000 and sold the bonds on January 3, 2019, for$880,000. At December 31, the bonds had a fair value of $873,000. What pretax amounts did S&L include in its2018 and 2019 net income as a result of this investment (ignoring interest)?
S&L Financial buys and sells securities expecting to earn profits on short-term differences in price. On December 27, 2018, S&L purchased Coca-Cola bonds at par for $875,000 and sold the bonds on January 3, 2019, for$880,000. At December 31, the bonds had a fair value of $873,000. What pretax amounts did S&L include in its2018 and 2019 net income as a result of this investment (ignoring interest)?
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter13: Investments And Long-term Receivables
Section: Chapter Questions
Problem 1MC
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S&L Financial buys and sells securities expecting to earn profits on short-term differences in price. On December 27, 2018, S&L purchased Coca-Cola bonds at par for $875,000 and sold the bonds on January 3, 2019, for
$880,000. At December 31, the bonds had a fair value of $873,000. What pretax amounts did S&L include in its
2018 and 2019 net income as a result of this investment (ignoring interest)?
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