90.2K

Verified Solution

Link Copied!

Harry Potter, Inc. purchased several Investments in debt securitles during 2020, its first year of operations. The following Information pertains to these securities, Pair Value 12/31/2020 Pale Value 12/31/2021 Held-to-Maturity Securities Deverell Brothers Co. Bonds Amortised Cost 12/31/2020 Amortixed cost 12/31/2021 $ 378,000 $ 403,000 $ 370,500 $ 363,000 Pair Value 12/31/2020 $ 53,000 Pair Value 12/31/2021 $ 62,900 Cost (at Face Value) $ 66,200 Trading Securities Elder Wand Co. Bonds Resurrection Stone Inc. Bonds Invisibility cloak Ine. S 50,400 $ 80,000 $ 42,000 $ 47,000 $ 41,500 Bonds $ 35,900 Available for Sale Securities Tirebolt Co. Donds Yair Value 12/31/2020 $ 234,100 Pair Value 12/31/2021 Cost (at Face Value) $ 151,500 $ 143,000 1. What should Harry Potter, Inc. report for its total investment in bonds in the December 31, 2020 and December 31, 2021 balonce sheets? 2. What would be the balance in Harry Potter's Accumulated Other Comprehensive Income (AOCI) with respect to these investments in Its 12/31/2020 and 12/312021 balance sheets (ignore taxes)? 3. What total unrealized holding gain or loss would Harry Potter report in its 2020 and 2021 Net Income relative to its investments in bonds? 4. What total unrealized holding gain or loss would Harry Potter report in its 2020 and 2021 Other Comprehensive income (ocrelative to its investments in bonds

Answer & Explanation Solved by verified expert

See Answer