Ask Question
BusinessBusiness
18 February, 11:32

On January 1, Butte Company's valuation allowance for trading investments account has a debit balance of $23,200. On December 31, the cost of the trading securities portfolio was $80,000. The fair value was $98,000. Which of the following would Butte report on the income statement for the current year?

+5
Answers (1)
  1. 18 February, 11:39
    0
    The gain of $18000 would be reported in income statement

    Explanation:

    At each reporting date, the investment needs to be recorded at fair value to reflect current market prices and realities.

    As a result, the fair value increase in investment of $18000 (fair value less costs) would be shown in income statement as unrealized gain on investment since the investment has not been disposed of.

    Under IFRS for instance the gain would be shown under other comprehensive in order to emphasis its unrealized nature.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “On January 1, Butte Company's valuation allowance for trading investments account has a debit balance of $23,200. On December 31, the cost ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
If Germany exports $100,000 of sauerkraut to Jamaica and purchases $100,000 of Blue Mountain coffee beans from Jamaica, Germany has1. a favorable balance of trade with Jamaica. 2. an overall favorable balance of trade. 3.
Answers (1)
Carter owns a hair salon. He sets his own schedule based on commitments to his kids and his clients' needs. Which core dimension does this describe for Carter's ability to set his own schedule? -autonomy -feedback -task significance -skill variety
Answers (1)
Dollar-Value LIFO On January 1, 2018, Sato Company adopted the dollar-value LIFO method of inventory costing.
Answers (1)
A business owner makes 50 items by hand in 40 hours. She could have earned $20 an hour working for someone else. Her total explicit costs are $200. If each item she makes sells for $15, her economic profit equals what?
Answers (1)
LaVilla is a village in the Italian Alps. Given its enormous popularity among Swiss, German, Austrian, and Italian skiers, all of its beds are always booked in the winter season and there are, on average, 1,200 skiers in the village.
Answers (1)
New Questions in Business
Hubbard Kennel uses tenant-days as its measure of activity; an animal housed in the kennel for one day is counted as one tenant-day. During January, the kennel budgeted for 2,100 tenant-days, but its actual level of activity was 2,060 tenant-days.
Answers (1)
Explain how to determine gross profit on an income statement by selecting the correct statement below. Cost of goods sold is added to net sales. Cost of goods sold is added to sales discounts. Sales is subtracted from cost of goods sold.
Answers (1)
Which of these is a disadvantage of banking with national retail banks
Answers (1)
Emily has been waiting for a promotion to a management position for almost five years. She notices that men fill most of the higher-level jobs in her company. She suspects she is not being promoted because she is female. What term describes this? A.
Answers (1)
Below are the account balances for Cowboy Law Firm at the end of December. Accounts Balances Cash $ 3,600 Salaries expense 1,300 Accounts payable 1,600 Retained earnings 4,700 Utilities expense 1,100 Supplies 12,000 Service revenue 7,500 Common
Answers (1)
Home » Business » On January 1, Butte Company's valuation allowance for trading investments account has a debit balance of $23,200. On December 31, the cost of the trading securities portfolio was $80,000. The fair value was $98,000.
Sign Up Forgot Password?