Reference no: EM132436401

Question

Partial financial information for the Fredricka Corporation for its year ended December 31, 20x8 is as follows:

• 20x8 20x7
• FVTOCI Investments $685,000 $650,000
• A*OCI 105,000 dr. $20,000 cr

Statement of Comprehensive Income -

1. Other Comprehensive Income - Loss on FVTOCI Investments ($40,000 Gain on
2. on sale of investment + 55,000 Loss on FV Adjustment at year-end) $35,000

Additional Information -

1. All FVTOCI Investments are investments in the equity securities of corporations.

2. One security whose original cost was $210,000 and carrying value was $250,000 was sold during the year.

Questions:

Question a. What is the proceeds on sale of the FVTOCI Investments?

Question b. What is the cost of the new FVTOCI Investments purchased during the year?