Question

On its 2011 balance sheet, Bank of America Corporation reports marketable debt securities of $311,416 million. The footnotes disclose that these securities have an amortized cost of $306,437 million. Which of the following is true?1) These are available-for-sale securities2) These are trading securities3) There are net unrealized gains of $4,979 on these securities4) Both A and C5) Both B and C

Answer 1

Answer:5. Both B & C

Explanation:

This security have an unrealized gain which the company expect to realize by selling at the market price in the nearest future. The availability of the carrying amount and the recoverable price shows that it's a trading security inclusive of other information. The inherent gain will be recognized once the sales is made.