405Ch17handoutpartI

405Ch17handoutpartI - Chapter 17 Investments Trading...

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Chapter 17 – Investments Trading Securities- Investments that the company bought and held primarily for sale in the near term to generate income on short-term price differences. Valued at fair value Unrealized gains and unrealized losses are Reported on the income statement. Held to Maturity Securities- Debt Securities that the company has the positive intent and ability to hold to maturity. Valued at amortized cost Available for Sale securities - Investments not classified as held-to- maturity or trading Valued at fair value Unrealized gains and unrealized losses are reported on the balance sheet under Accumulated Other Comprehensive Income.
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Mark to market at the end of each accounting cycle Report at fair value Report unrealized gains and losses on the income statement E 17-6a Trading Securities 12/31/10 Securities Fair Value Adjustment (Trading) Unrealized Holding Gain – Income Assume that you sell the Dow Preferred on 1/6/11 for 20,000. 1/6/11
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405Ch17handoutpartI - Chapter 17 Investments Trading...

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