What is the total amount of unrealized gain

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Question - Boneau Company purchased $5,000,000 of 12%, 5-year bonds from Chouteau, Inc. on January 1, 2018, with interest payable on July 1 and January 1. The bonds sold for $5,386,087 at an effective interest rate of 10%. Using the effective-interest method, Boneau Company decreased the Available-for-Sale Debt Securities account for the Chouteau, Inc. bonds on July 1, 2018 and December 31, 2018 by the amortized premiums of $30,696 and $32,230, respectively.

At December 31, 2018, the fair value of the Chouteau, Inc. bonds was $5,400,000. What should Boneau Company report as other comprehensive income and as a separate component of stockholders' equity?

At April 1, 2019, Boneau Company sold the Chouteau bonds for $5,450,000. After accruing for interest, the carrying value of the Chouteau bonds on April 1, 2019 was $5,456,240. Assuming Boneau Company has a portfolio of Available-for-Sale Debt Securities, what should Boneau Company report as a gain or loss on the bonds? 6) During 2018 Bonner Company purchased 20,000 shares of West Riverside, Inc. for $25 per share. During the year Bonner Company sold 12,000 shares of West Riverside, Inc. for $26.50 per share.

At December 31, 2018 the market price of West Riverside, Inc.'s stock was $22.5 per share. What is the total amount of unrealized gain/(loss) that Bonner Company will report in its income statement for the year ended December 31, 2018 related to its investment in West Riverside, Inc. stock?

Reference no: EM133170018

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