Various investment securities
Response to the following problem:
At December 31, 2016, Hull-Meyers Corp. had the following investments that were purchased during 2016, its first year of operations:
|
|
Cost
|
Fair Value
|
|
Trading Securities:
|
|
|
|
Security A
|
$ 900,000
|
$ 910,000
|
|
Security B
|
105,000
|
100,000
|
|
Totals
|
$1,005,000
|
$1,010,000
|
|
Securities Available-for-Sale:
|
|
|
|
Security C
|
$ 700,000
|
$ 780,000
|
|
Security 0
|
900,000
|
915,000
|
|
Totals
|
$1,600,000
|
$1,695,000
|
|
Securities to Be Held-to-Maturity:
|
|
|
|
Security E
|
$ 490,000
|
$ 500,000
|
|
Security F
|
615,000
|
610,000
|
|
Totals
|
$1,105,000
|
$1,110,000
|
No investments were sold during 2016. All securities except Security D and Security F are considered shortterm investments. None of the fair value changes is considered permanent.
Required:
Determine the following amounts at December 31, 2016.
1. Investments reported as current assets.
2. Investments reported as noncurrent assets.
3. Unrealized gain (or loss) component of income before taxes.
4. Unrealized gain (or loss) component of accumulated other comprehensive income in shareholders' equity.