Instrument Corp. has the following investments which were held throughout 2010-2011:
Market Value
Cost 12/31/10 12/31/11
Trading $300,000 $400,000 $380,000
Available-for-sale 300,000 320,000 360,000
What amount of gain or loss would Instrument Corp. report in its income statement for the year ended December 31, 2011 related to its investments?
a. $20,000 gain.
b. $20,000 loss.
c. $140,000 gain.
d. $80,000 gain.
Answer: B
What amount would be reported as accumulated other comprehensive income related to investments in Instrument Corp.'s balance sheet at December 31, 2010?
a. $40,000 gain.
b. $60,000 gain.
c. $20,000 gain.
d. $120,000 gain.
Answer: C