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Intermediate Accounting: Reporting...

3rd Edition
James M. Wahlen + 2 others
ISBN: 9781337788281

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Intermediate Accounting: Reporting...

3rd Edition
James M. Wahlen + 2 others
ISBN: 9781337788281
Textbook Problem
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During 2021, Anthony Company purchased debt securities as a long-term investment and classified them as trading. All securities were purchased at par value. Pertinent data are as follows:

Chapter 13, Problem 2MC, During 2021, Anthony Company purchased debt securities as a long-term investment and classified them

The net holding gain or loss included in Anthony’s income statement for the year should be:

  1. a. $0
  2. b. $3,000 gain
  3. c. $9,000 loss
  4. d. $12,000 loss

To determine

Identify the net holding gain or loss that should be included in Company A’s income statement.

Explanation

Calculate the net holding gain or loss for Company A:

Net holdings gain or loss=Total market valueTotal cost=$150,000$

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