Answer:
Pharoah should report $ 29,000 as unrealised gain on its 2021 income statement.
Explanation:
The Investments are valued at lower of cost or fair value.
On December 31,2020 investments were reported to bevalued at $ 592,000. According to the data On December 31, 2021 the fair value has raised to $ 621,000.
The Investments are valued at lower of cost or fair value.
Therefore, to calculate what should Pharoah report on its 2021 income statement as a result of the increase in fair value of the investments in 2021, we have the following calculation:
$621,000-$592,000=$29,000
Hence, Pharoah should report $ 29,000 as unrealised gain on its 2021 income statement.
