MGMT 1A Lecture Notes - Lecture 16: Historical Cost, Income Statement, Macrs
Document Summary
Mgmt 1a lecture 16 notes - equity securitie and depreciation calculation. Equity securities - mark to market: should not be recorded at historical cost: treatment or unrealized gain/loss. Securities held principally for selling in the near term (don"t intend on keeping it for more than a year) Held to maturity (might sell or might not) Held to maturity securities which the company has the ability and intent to hold to maturity. 7: determine the journal entry to mark to market at the end of year 1: Fva"s t-account could have both cr or dr balances because it is the . Permanent account , fva is the contra-account of investments = Valuation allowance is a contra-asset or . Unrealized loss is an other loss/expense on the income statement comprehensive list of things) Since your gained 4 from the previous year, but at the same time you are still at a loss, thats why you cr gain/loss.
