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What amount of loss should carter company report

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Reference no: EM133042619

Questions - a. Calculate Depreciation for Year 1 using units of production-activity based depreciation. 80 delivery vans were purchased at a cost of $50,000 each. Each delivery van is estimated to be driven a total of 80,000 miles and then be sold for an estimated $10,000. In Year 1 the vans were driven 1,500,000 miles.

b. Carter Company had investments in marketable securities classified as available-for-sale costing $600,000. On June 30, 2020, Carter Company reclassified the marketable securities as held-to-maturity. The market value of the investments was as follows: $550,000 on December 31, 2019, $520,000 on June 30, 2020, and $500,000 on December 31, 2020. Carter Company does not elect the fair value option to account for these investments. What amount of loss should Carter Company report in its 2020 income statement as of December 31, 2020?

a. $0

b. $30,000

c. $80,000

d. None of the above

Reference no: EM133042619

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