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ABC purchased the following debt security in 2018 with the purpose of resale in the...

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Accounting

ABC purchased the following debt security in 2018 with the purpose of resale in the near future:
Description Cost Amortized Cost
12/31/18
FMV
12/31/18
Amortized Cost
12/31/19
FMV
12/31/19
5-yr.,5% bonds
X Corp.
$450,000 $458,000 $515,000 $469,000 $500,000
7. Determine the unrealized holding gain (loss) to be reported in 2018 other comprehensive income.
A. $0
B. $8,000
C. $57,000
D. $65,000
E.($8,000)
8. Determine the unrealized holding gain (loss) to be reported in 2019 earnings.
A. $0
B.($26,000)
C.($15,000)
D. $19,000
E. $31,000
F. $50,000
9. The unrealized holding gain (loss) from 2019 should be reported on the statement of cash flows
(indirect method)
A. As an addition to net income in determining CFO
B. As a subtraction to net income in determining CFO
C. As an addition to CFI
D. As a subtraction to CFI
E. None of the above Answer E, A, B

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