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Jeremiah Corporation purchased debt securities during 2021 and classified them as securities available-for-sale:

Security Cost Fair Value, 12/31/2021
A $40,000 $49,000
B 70,000 66,000
C 28,000 39,000

All declines are considered to be temporary. How much gain will be reported by Jeremiah Corporation in the December 31, 2021, income statement relative to the portfolio?

Respuesta :

jepessoa

Answer:

$0

Explanation:

unrealized holding loss = ending value - initial value = ($49,000 + $66,000 + $39,000)  - ($40,000 + $70,000 + $28,000) = $109,000 - $138,000 = -$29,000 unrealized loss

Unrealized holding gains/losses on available for sale securities are not reported in the income statement.

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