Chapter 17 INVESTMENTS

Chapter 17 INVESTMENTS - Chapter 17 INVESTMENTS 1 On...

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Chapter 17: INVESTMENTS 1. On October 1, 2006, Ming Co. purchased 600 of the $1,000 face value , 8% bonds of Loy, Inc., for $702,000, including accrued interest of $12,000. The bonds, which mature on January 1, 2013, pay interest semiannually on January 1 and July 1. Ming used the straight-line method of amortization and appropriately recorded the bonds as available-for-sale. On Ming's December 31 , 2007 balance sheet, the carrying value of the bonds is a. $690,000. b. $684,000. c. $681,600. d. $672,000. 2. Unruh Corp. began operations in 2007. An analysis of Unruh’s equity securities portfolio acquired in 2007 shows the following totals at December 31 , 2007 for trading and available-for-sale securities: Trading Available-for-Sale Securities Securities Aggregate cost $90,000 $110,000 Aggregate fair value 65,000 95,000 What amount should Unruh report in its 2007 income statement for unrealized holding loss? a. $40,000. b. $10,000.
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Chapter 17 INVESTMENTS - Chapter 17 INVESTMENTS 1 On...

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