Question #68

Reading: Reading 8 Intercorporate Investments

PDF File: Reading 8 Intercorporate Investments.pdf

Page: 30

Status: Unattempted

Part of Context Group: Q68-70 First in Group
Shared Context
- What is the income from the equity portfolio if the securities are classified as FVPL? A) $19,900. B) $20,900. C) –$6,600.
Question
What is the balance sheet carrying value of the securities under each of the classifications at year-end? FVPL FVOCI
Answer Choices:
A. $71,500 $71,500
B. $90,000 $71,500
C. $90,000 $90,000
Explanation
Under the FVPL and FVOCI classifications the balance sheet carrying values are the market values of the shares or 90,000 = (1,500 × 60).
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