Was the equity security classified asavailable-for-sale


On December 31, 2011, Munch Co. sold an equity security that had been purchased on January 4, 2010. Munch owned no other equity securities. An unrealized holding loss was reported in the 2010 income statement. A realized gain was reported in the 2011 income statement. Was the equity security classified asavailable-for-sale, and if so, why? Also, did its 2010 market price decline exceed its 2011 market price recovery, and if so, why?

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Accounting Basics: Was the equity security classified asavailable-for-sale
Reference No:- TGS0555831

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