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Use the following information forparts A through C.

On its December 31, 2007 balance sheet, Klugman Companyappropriately reported a $10,000 debit balance in its SecuritiesFair Value Adjustment (Available-for-Sale) account. There was nochange during 2008 in the composition of Klugman’s portfolio ofmarketable equity securities held as available-for-sale securities.The following information pertains to that portfolio:

Security Cost Fair value at 12/31/08

X $125,000 $160,000

Y 100,000 95,000

Z 175,000 125,000

$400,000 $380,000

A. The Journal entry requiredto properly record the AFS ( Available for sale) securities at12/31/2017. What would be the securities fair value adjustmentaccount ?

a. $30,000.

b. $20,000.

c. $10,000.

d. $0.

B. The amount of unrealized loss toappear as a component of comprehensive income for the year endingDecember 31, 2008 is

a. $30,000.

b. $20,000.

c. $10,000.

d. $0.

C. The only item that impacts the AOCI for Klugman isAFS debt investment. What is the balance in the AOCI account as of12/31/2017?

a. $30,000.

b. $20,000.

c. $10,000.

d. $0.

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Reid Wolff
Reid WolffLv2
28 Sep 2019

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