Question - The following information pertains to J & J's subsidiary's portfolio of investments for the year ended December 31, 2015.
Assume that Security A is a debt security that was purchased at a discount. The discount amortization for 2015 was $1,000. All declines in fair value are considered to be temporary.
Required:
a) What is the carrying amount of Security A at December 31, 2015?
b) What is the carrying amount of Security B at December 31, 2015?
c) What is the carrying amount of Security E at December 31, 2015?
d) What is the amount of realized gain or loss on Security C for 2015?
e) What is the amount of realized gain or loss on Security D for 2015?
f) What is the amount of unrealized gain or loss to be reported on the 2015 income statement?
g) What is the amount of unrealized gain or loss to be reported at December 31, 2015, as a separate component of stockholders' equity?