Available-for-sale investments: Available-for-sale investments are the investments in debt or equity securities, where the investor wishes to holds less than 20% of voting stock, and neither referred as trading or hold-to-maturity investments. For debt securities, the investor do not wish to hold it till maturity, and hence reported either as current assets or as long-term assets in the balance sheet depending upon the holding period of the security. Fair value: Fair value refers to the price of the securities in the market, if the company has decided to sell the securities. Unrealized-gain or Unrealized-loss: Unrealized-holding gain or loss occurs when the investor company record the investments at its fair value, in its financial statements, without disposing (selling) them. When the cost of the investment is lesser than the fair value of the investment, then it is unrealized-gain. On the contrary, when the cost of the investment is greater than the fair value of the investment, then it is unrealized-loss. Where the unrealized holding gain or loss on the available-for-sale investment is reported on the financial statements.

Question

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Answer 1

Question

Chapter 10, Problem 11RQ

To determine

Available-for-sale investments:

Available-for-sale investments are the investments in debt or equity securities, where the investor wishes to holds less than 20% of voting stock, and neither referred as trading or hold-to-maturity investments. For debt securities, the investor do not wish to hold it till maturity, and hence reported either as current assets or as long-term assets in the balance sheet depending upon the holding period of the security.

Fair value:

Fair value refers to the price of the securities in the market, if the company has decided to sell the securities.

Unrealized-gain or Unrealized-loss:

Unrealized-holding gain or loss occurs when the investor company record the investments at its fair value, in its financial statements, without disposing (selling) them. When the cost of the investment is lesser than the fair value of the investment, then it is unrealized-gain. On the contrary, when the cost of the investment is greater than the fair value of the investment, then it is unrealized-loss.

Where the unrealized holding gain or loss on the available-for-sale investment is reported on the financial statements.

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Answer 2

Question

Chapter 10, Problem 11RQ

To determine

Available-for-sale investments:

Available-for-sale investments are the investments in debt or equity securities, where the investor wishes to holds less than 20% of voting stock, and neither referred as trading or hold-to-maturity investments. For debt securities, the investor do not wish to hold it till maturity, and hence reported either as current assets or as long-term assets in the balance sheet depending upon the holding period of the security.

Fair value:

Fair value refers to the price of the securities in the market, if the company has decided to sell the securities.

Unrealized-gain or Unrealized-loss:

Unrealized-holding gain or loss occurs when the investor company record the investments at its fair value, in its financial statements, without disposing (selling) them. When the cost of the investment is lesser than the fair value of the investment, then it is unrealized-gain. On the contrary, when the cost of the investment is greater than the fair value of the investment, then it is unrealized-loss.

Where the unrealized holding gain or loss on the available-for-sale investment is reported on the financial statements.

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Answer 3

Question

Chapter 10, Problem 11RQ

To determine

Available-for-sale investments:

Available-for-sale investments are the investments in debt or equity securities, where the investor wishes to holds less than 20% of voting stock, and neither referred as trading or hold-to-maturity investments. For debt securities, the investor do not wish to hold it till maturity, and hence reported either as current assets or as long-term assets in the balance sheet depending upon the holding period of the security.

Fair value:

Fair value refers to the price of the securities in the market, if the company has decided to sell the securities.

Unrealized-gain or Unrealized-loss:

Unrealized-holding gain or loss occurs when the investor company record the investments at its fair value, in its financial statements, without disposing (selling) them. When the cost of the investment is lesser than the fair value of the investment, then it is unrealized-gain. On the contrary, when the cost of the investment is greater than the fair value of the investment, then it is unrealized-loss.

Where the unrealized holding gain or loss on the available-for-sale investment is reported on the financial statements.

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Answer 4

Question

Chapter 10, Problem 11RQ

To determine

Available-for-sale investments:

Available-for-sale investments are the investments in debt or equity securities, where the investor wishes to holds less than 20% of voting stock, and neither referred as trading or hold-to-maturity investments. For debt securities, the investor do not wish to hold it till maturity, and hence reported either as current assets or as long-term assets in the balance sheet depending upon the holding period of the security.

Fair value:

Fair value refers to the price of the securities in the market, if the company has decided to sell the securities.

Unrealized-gain or Unrealized-loss:

Unrealized-holding gain or loss occurs when the investor company record the investments at its fair value, in its financial statements, without disposing (selling) them. When the cost of the investment is lesser than the fair value of the investment, then it is unrealized-gain. On the contrary, when the cost of the investment is greater than the fair value of the investment, then it is unrealized-loss.

Where the unrealized holding gain or loss on the available-for-sale investment is reported on the financial statements.

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Answer 5

Chapter 10, Problem 11RQ

To determine

Available-for-sale investments:

Available-for-sale investments are the investments in debt or equity securities, where the investor wishes to holds less than 20% of voting stock, and neither referred as trading or hold-to-maturity investments. For debt securities, the investor do not wish to hold it till maturity, and hence reported either as current assets or as long-term assets in the balance sheet depending upon the holding period of the security.

Fair value:

Fair value refers to the price of the securities in the market, if the company has decided to sell the securities.

Unrealized-gain or Unrealized-loss:

Unrealized-holding gain or loss occurs when the investor company record the investments at its fair value, in its financial statements, without disposing (selling) them. When the cost of the investment is lesser than the fair value of the investment, then it is unrealized-gain. On the contrary, when the cost of the investment is greater than the fair value of the investment, then it is unrealized-loss.

Where the unrealized holding gain or loss on the available-for-sale investment is reported on the financial statements.

Answer 6

Chapter 10, Problem 11RQ

To determine

Available-for-sale investments:

Available-for-sale investments are the investments in debt or equity securities, where the investor wishes to holds less than 20% of voting stock, and neither referred as trading or hold-to-maturity investments. For debt securities, the investor do not wish to hold it till maturity, and hence reported either as current assets or as long-term assets in the balance sheet depending upon the holding period of the security.

Fair value:

Fair value refers to the price of the securities in the market, if the company has decided to sell the securities.

Unrealized-gain or Unrealized-loss:

Unrealized-holding gain or loss occurs when the investor company record the investments at its fair value, in its financial statements, without disposing (selling) them. When the cost of the investment is lesser than the fair value of the investment, then it is unrealized-gain. On the contrary, when the cost of the investment is greater than the fair value of the investment, then it is unrealized-loss.

Where the unrealized holding gain or loss on the available-for-sale investment is reported on the financial statements.

Answer 7

Chapter 10, Problem 11RQ

To determine

Available-for-sale investments:

Available-for-sale investments are the investments in debt or equity securities, where the investor wishes to holds less than 20% of voting stock, and neither referred as trading or hold-to-maturity investments. For debt securities, the investor do not wish to hold it till maturity, and hence reported either as current assets or as long-term assets in the balance sheet depending upon the holding period of the security.

Fair value:

Fair value refers to the price of the securities in the market, if the company has decided to sell the securities.

Unrealized-gain or Unrealized-loss:

Unrealized-holding gain or loss occurs when the investor company record the investments at its fair value, in its financial statements, without disposing (selling) them. When the cost of the investment is lesser than the fair value of the investment, then it is unrealized-gain. On the contrary, when the cost of the investment is greater than the fair value of the investment, then it is unrealized-loss.

Where the unrealized holding gain or loss on the available-for-sale investment is reported on the financial statements.

Answer 8

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Answer 9

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Answer 10

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Answer 11

Ch. 10 - Prob. 1QC Ch. 10 - Which of the following investments is most likely...Ch. 10 - If Intervale Railway invests 100,000 in 5% bonds...Ch. 10 - Prob. 4QC Ch. 10 - Prob. 5QC Ch. 10 - Prob. 6QC Ch. 10 - Prob. 7QC Ch. 10 - Harvard Co. purchased a trading investment on...Ch. 10 - Prob. 9QC Ch. 10 - Prob. 10QC

Solution Summary: The author explains that unrealized-holding gain or loss occurs when the investor company record the investments at its fair value, in its financial statements, without disposing (selling) them.

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Chapter 10 Solutions