3] Gleim #: 10.1.12 -- Source: CPA 592 II-7
The following information pertains to Lark Corp.’s available-for-sale securities:
Differences between cost and fair values are considered to be temporary. The decline in
fair value was properly accounted for at December 31, Year 2. Ignoring tax effects, by
what amount should other comprehensive income (OCI) be credited at December 31,
 Gleim #: 10.1.18 -- Source: CPA 591 I-58
On January 2, Year 1, Adam Co. purchased as a long-term investment 10,000 shares of
Mill Corp.’s common stock for $40 a share. These securities were properly classified as
available for sale. On December 31, Year 1, the market price of Mill’s stock was $35 a
share, reflecting a temporary decline in market price. On January 28, Year 2, Adam sold
8,000 shares of Mill stock for $30 a share. For the year ended December 31, Year 2,
Adam should report a realized loss on disposal of a long-term investment of
 Gleim #: 10.1.31 -- Source: Publisher
In accordance with SFAS 115, a reclassification of available-for-sale securities to the
held-to-maturity category will result in
The amortization of an unrealized gain or loss existing at the transfer date.
The recognition in earnings on the transfer date of an unrealized gain or loss.
The reversal of any unrealized gain or loss previously recognized in earnings.
The reversal of any unrealized gain or loss previously recognized in other