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  3. 1. how does electing the fair value option under u

1. How does electing the Fair Value Option under US GAAP change the reporting for...

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Accounting

1. How does electing the Fair Value Option under US GAAP change the reporting for investments classified as Trading Securities? Balance Sheet effect / Income Statement effect

No change/ No change

Change to fair value / Change to recognized unrealized gain & loss in OCI

Change to fair value / Change to recognized unrealized gain & loss in the Income Statement

No change / Change to recognized realized gain & loss in the Income Statement

None of the above describes the change due to electing the Fair Value Option

2. A company records an unrealized loss on short-term debt securities classified as trading. Unrealized losses are not tax deductible but realized losses are. This would result in what type of difference and in what type of deferred income tax?

Type of Difference Deferred Tax

Temporary Liability

Temporary Asset

Permanent Liability

Permanent Asset

3. The following information pertains to Garfield Co.s defined benefit pension plan for the current year:

Fair value of plan assets 1/1 $350,000

Fair value of plan assets at 12/31 $525,000

Employer contributions $110,000

Benefits paid $85,000

What amount was Garfileds actual return on plan assets?

$65,000

$175,000

$150,000

$260,000

None of the above

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