A company buys ten shares of securities at $1,000 each on January 15, year 1. The securities are classified as available-for-sale. The fair value of the securities increases to $1,250 per share as of December 31, year 1. The company does not elect to use the fair value option for reporting available-for-sale securities. Assume no dividends are paid and that the company has a 30% tax rate. What is the amount of the holding gain arising during the period that is classified in other comprehensive income for the period ending December 31, year 1?
A) $0
B) $1,750
C) $2,500
D) $7,500
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “A company buys ten shares of securities at $1,000 each on January 15, year 1. The securities are classified as available-for-sale. The fair ...” 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
Which of the following best describes the difference between an unadjusted trial balance and an adjusted trial balance?
Answers (1)
The Sarbanes-Oxley Act of 2002 (SOX) imposes stricter requirements over financial reporting and internal controls and stricter consequences for those who engage in financial statement misconduct and other white-collar crimes. True or False
Answers (1)
At Ava's second birthday, her grandparents wanted to pool their money to buy U. S. Treasury bonds that would ultimately provide $120,000 for college expenses in 16 years. If calculating a gain of 4% interest, what dollar amount in U. S.
Answers (1)
To calculate 41/5% tax on $63.78, multiply 4.2 times 63.78.
Answers (1)
India is an example of which type of Economic System - Options Mixed Economy Command Economy Market Economy Centrally Planned Economy
Answers (1)
New Questions in Business
A firm realizes that the market price has fallen below its average total costs, and it is now earning a loss. what is the best action for the firm to take in the short run?
Answers (1)
Fixed expenses: a. includes labor, raw materials, and commissions. b. can be estimated by taking into consideration the production. c. are incurred regardless of sales volume. d. must be linked to strategy in the business plan
Answers (1)
4) Which of the following is least likely to be your primary health care provider? a. an allergist b. an internist c. an obstetrician-gynecologist
Answers (1)
T/F A macroeconomist would be concerned with the following statement. "Two major hurricanes caused significant damage to the eastern seaboard and led to a fall in GDP and a rise in unemployment in the U. S. economy."
Answers (1)
At the beginning of the year, Mitchum Enterprises allows for estimated uncollectible accounts of $14,000. By the end ofthe year, actual bad debts total $15,000. Record the write-off to uncollectible accounts.
Answers (1)