Quiz 3 - Question1of10 1.0Points During 2012 Woods Company purchased 40,000 shares of Holmes Corp common stock for $630,000 as an

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1.0 Points During 2012, Woods Company purchased 40,000 shares of Holmes Corp. common stock for $630,000 as an available-for-sale investment. The fair value of these shares was $600,000 at December 31, 2012. Woods sold all of the Holmes stock for $17 per share on December 3, 2013, incurring $28,000 in brokerage commissions. Woods Company should report a realized gain on the sale of stock in 2013 of A. $52,000. B. $50,000. C. $22,000. D. $80,000. Question 2 of 10 1.0 Points Which of the following is not generally correct about recording a sale of a debt security before maturity date? A. The entry to amortize a premium to the date of sale includes a credit to the Premium on Investments  in Debt Securities. B. An entry must be made to amortize a discount to the date of sale. C. A gain or loss on the sale is not extraordinary. D. Accrued interest will be received by the seller even though it is not an interest payment date. Question 3 of 10 1.0 Points Impairments are A. based on fair value for available-for-sale investments and on negotiated values for held-to-maturity  investments. B. based on discounted cash flows for securities. C. recognized as a realized loss if the impairment is judged to be temporary. D. evaluated at each reporting date for every investment.
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This note was uploaded on 01/16/2012 for the course BUS 312 taught by Professor Account during the Spring '11 term at IUPUI.

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Quiz 3 - Question1of10 1.0Points During 2012 Woods Company purchased 40,000 shares of Holmes Corp common stock for $630,000 as an

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