题目
题目

Homework:practice exam 2

单项选择题

Part 1Rhoads purchased common shares of Company A and B for​ $10,000 and $ 7,000$7,000​, respectively on​ 12/15. Rhoads intends to sell these securities within 30 days. At​ 12/31, Investments in Company A​ & B had a fair value of​ $9,000 and $ 17,000$17,000​, respectively. Assuming Rhoads has no significant influence over the investee​ companies, what is the unrealized gain or loss for these securities and how is it​ reported? Part 1 A. Unrealized Gain of $ 9,000$9,000​, reported as part of Net Income B. Unrealized Loss of​ $1,000, Unrealized Gain of $ 10,000$10,000​, both reported as part of Net Income C. Unrealized Loss of​ $1,000, Unrealized Gain of $ 10,000$10,000​, both reported as part of Other Comprehensive Income D. Unrealized Gain of $ 9,000$9,000​, reported as part of Other Comprehensive Income

选项
A.A. Unrealized Gain of $ 9,000 ​ , reported as part of Net Income
B.B. Unrealized Loss of ​ $1,000, Unrealized Gain of $ 10,000 ​ , both reported as part of Net Income
C.C. Unrealized Loss of ​ $1,000, Unrealized Gain of $ 10,000 ​ , both reported as part of Other Comprehensive Income
D.D. Unrealized Gain of $ 9,000 ​ , reported as part of Other Comprehensive Income
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思路分析
To tackle this question, I first compare the original cost of the investments with their fair values at 12/31 and determine the unrealized gains or losses for each security. Option A details a net unrealized gain of $9,000 and states it is reported in Net Income. Here, Investment in Company A: cost $10,000, fair value $9,000 → unrealized loss of $1,000. Investment in Company B: co......Login to view full explanation

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