Question

Following is a portion of the investments footnote from Homer Corp. 2012 10-K. (in millions) 2012 Amortized cost of available-for-sale securities $231,312
Gross unrealized gains 7,635
Gross unrealized losses $33,123
What amount does Homer report for available for sale securities on its 2012 balance sheet?
A) $25,488 million
B) $205,824 million
C) $231,312 million
D) $256,800 million
E) None of the above

Answer 1

Answer:

available for sale  security =$205,824 million as of 2012

correct option is B) $205,824 million

Explanation:

given data

cost of sale securities =  $231,312

Gross unrealized gains =  $7,635

Gross unrealized losses = $33,123

to find out

What amount does Homer report for available for sale securities

solution

we know  here that sale investment is report at fair value on balance sheet

so that available for sale  security is report as

available for sale  security = cost of sale securities+ Gross unrealized gains -   Gross unrealized losses   ..............................1

available for sale  security = $231,312 + $7,635 - $33,123

available for sale  security =$205,824 million as of 2012