Its income statement related to these securities

Assignment Help Financial Accounting

Reference no: EM131262518

McStuffin Co. purchased the following portfolio of securities during 2014 and reported the following balances at December 31, 2014. No sales occurred during 2014. All declines are considered to be temporary.

Security Classification Cost Market Value at 12/31/14

X Trading security $ 221,000 $ 237,000

Y Available-for-Sale 174,000 163,000

Z Trading security 139,000 121,000

a) What amount should McStuffin Co. report on its income statement related to these securities?

b) Would your answer change if all of the securities were sold at the end of 2014? Explain.

Reference no: EM131262518

Questions Cloud

Legal sanctions important in a property-based legal system : Why are legal sanctions important in a property-based legal system? What is the difference between a sanction and a remedy?

Discuss five of the external stakeholders of organizations : Discuss at least five of the external stakeholders of organizations that lie in the task environment. Explain why each of these is important to the organization.

What amount should investor’s investment : Investor Inc. owns 25 percent of Alimand Corporation. During the calendar year 20X5, Alimand had net earnings of $130,000 and paid dividends of $10,000. Investor accounts for this investment using the equity method. In its December 31, 20X5 balance s..

Evaluate value and utility afforded by philip kotlers plan : Evaluate the value and utility afforded by Philip Kotler's Segment-by-Segment Invasion Plan as a tool for mapping current and future market segment pursuits. Provide support for your rationale.

Its income statement related to these securities : McStuffin Co. purchased the following portfolio of securities during 2014 and reported the following balances at December 31, 2014. No sales occurred during 2014. All declines are considered to be temporary. What amount should McStuffin Co. report on..

Contemporary organizations and management theories : Examine the role of Fayol's pillars of management and how they may conflict or conversely fit with contemporary organizations and management theories. Explain comprehensively why or how a manager might reconcile happily the two approaches to manag..

What are the advantages of using an rnc over a ram : For your platform, language, and cryptography library of choice, summarize how the cryptographic PRNC works internally. Consider issues including but not limited to the following: how the entropy is collected, how reseeding occurs, and how the ram..

Reported as earnings contingency liability : As part of the acquisition agreement, Akron Corporation agrees to pay the former shareholders of Cleveland Company $0.65 in cash for every dollar of gross revenues above $7,000,000 reported at the end of the first year following acquisition. Using a ..

Place each of given products and services along the continum : Using the abbreviations in parentheses, place each of the following products and services along the continuum below: - a new car (C), designer jeans (J), car oil change (O), dress dry cleaning (D), haircut (H), tax preparation software (T), college ..

User Account

All Pages