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Natasha2012 [34]
3 years ago
8

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?
Business
1 answer:
bulgar [2K]3 years ago
7 0

Answer:

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.

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4 years ago
When the central bank acts in a way that causes the money supply to increase while aggregate demand remains unchanged, it is:?
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The CEO introduced another overseas effort by noting that it represented an attempt to confront an international competitor. The
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