U3 CPA Questions

U3 CPA Questions - CPA QUESTIONS: 1. The followin g...

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CPA QUESTIONS: 1. The followin g informati on pertains to Lark Corp's long- term marketab le equity securitie s portfolio : Decemb er 31 2011 2010 Cost $200,000 $200,000 Fair value 240,000 180,000 Differences between cost and market values are considered to be temporary. The decline in market value was properly accounted for at December 31, 2010. At December 31, 2011, what is the net unrealized holding gain or loss to be reported as: Other Accumu lated Other Compre hensive Income Compre hensive Income a $60,000 gain $40,000 gain b $40,000 gain $60,000 gain c $20,000 loss $20,000 loss c $0 $0 2. On both December 31, 2010, and December 31, 2011, Kopp Co.,'s only equity security investment had the same fair value, which was below its original cost. Kopp considered the decline in value to be temporary in 2010 but other-than-temporary in 2011. At the end of both years the security was classified as a noncurrent asset.
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Kopp could not exercise significa nt influence over the investee. What
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U3 CPA Questions - CPA QUESTIONS: 1. The followin g...

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