. At December 31, 2021, Crane Corporation had the following debt securities that were purchased during 2021, its first year of operation:     Cost   Fair Value   Unrealized Gain (Loss) Trading Securities:         Security A $90000 $ 66000 $(24000)     B 16000 21000 5000   Totals   $106000 $87000 $(19000) Available-for-Sale Securities:         Security Y $80000 $90000 $10000     Z 95000 63000 (32000)   Totals   $175000 $153000 $(22000)

Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter13: Investments And Long-term Receivables
Section: Chapter Questions
Problem 2MC: During 2021, Anthony Company purchased debt securities as a long-term investment and classified them...
icon
Related questions
Question

. At December 31, 2021, Crane Corporation had the following debt securities that were purchased during 2021, its first year of operation:

    Cost   Fair
Value
  Unrealized
Gain (Loss)
Trading Securities:      
  Security A

$90000

$ 66000

$(24000)

    B

16000

21000

5000

  Totals  

$106000

$87000

$(19000)

Available-for-Sale Securities:      
  Security Y

$80000

$90000

$10000

    Z

95000

63000

(32000)

  Totals  

$175000

$153000

$(22000)


All market declines are considered temporary. Fair value adjustments at December 31, 2021 should be established with a corresponding charge against

Multiple choice

 

Income

Stockholders’ Equity

$19000

$   0

$22000

$    0

$19000

$42000

$19000

$22000

Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps with 1 images

Blurred answer
Knowledge Booster
Investments and Financial instruments
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning