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Show the items of income or loss on available-for-sale

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Reference no: EM132887927

Problem - Available-for-Sale Securities Holly Company invests its excess cash in marketable securities. At the beginning of 2019, it had the following portfolio of investments in available-for-sale debt securities:

Investments in Available-for-Sale Bonds During 2019, Dana Company decided to begin investing its idle cash in marketable securities. The information contained below relates to Dana's 2019 marketable security transactions:

Apr. 1 Purchased $20,000 face value of Solomon Inc. 12% bonds at par plus accrued interest; interest on the bonds is payable each June 30 and December 31.

June 30 Received the semiannual interest on the Solomon bonds.

Nov. 1 Purchased $30,000 face value of Edwards Company 11% bonds at par plus accrued interest; interest on the bonds is payable each June 1 and December 1.

Dec. 1 Received the interest on the Edwards bonds and sold the bonds for $30,300.

Dec. 31 Received the interest on the Solomon bonds. At year-end, the market price of the Solomon bonds was $20,200.

Required -

Record Dana's investment transactions for 2019.

Show the items of income or loss on available-for-sale investments Dana reports on its 2019 income statement.

Show the carrying value of Dana's investment account on its December 31, 2019, balance sheet.

Reference no: EM132887927

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