Use the following information forparts A through C.On its December 31, 2007 balance sheet,...Use...

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Accounting

Use the following information forparts A through C.
On its December 31, 2007 balance sheet, Klugman Companyappropriately reported a $10,000 debit balance in its SecuritiesFair Value Adjustment (Available-for-Sale) account. There was nochange during 2008 in the composition of Klugman’s portfolio ofmarketable equity securities held as available-for-sale securities.The following information pertains to that portfolio:
     Security                 Cost              Fair value at 12/31/08
                     X                   $125,000                    $160,000
                     Y                     100,000                        95,000
                     Z                   175,000                    125,000
                                           $400,000                   $380,000
A. The Journal entry requiredto properly record the AFS ( Available for sale) securities at12/31/2017. What would be the securities fair value adjustmentaccount ?
a.   $30,000.
b.   $20,000.
c.   $10,000.
d.   $0.
B.    The amount of unrealized loss toappear as a component of comprehensive income for the year endingDecember 31, 2008 is
a.   $30,000.
b.   $20,000.
c.   $10,000.
d.   $0.
C. The only item that impacts the AOCI for Klugman isAFS debt investment. What is the balance in the AOCI account as of12/31/2017?
a.   $30,000.
b.   $20,000.
c.   $10,000.
d.   $0.

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Answer to Question 1 The correct option is C USD 10000 The total cost of investments is 400000 and the securities fair value adjustment account has a balance of USD 10000 taking the net See Answer

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In: AccountingUse the following information forparts A through C.On its December 31, 2007 balance sheet,...Use the following information forparts A through C.On its December 31, 2007 balance sheet, Klugman Companyappropriately reported a $10,000 debit balance in its SecuritiesFair Value Adjustment (Available-for-Sale) account. There was nochange during 2008 in the composition of Klugman’s portfolio ofmarketable equity securities held as available-for-sale securities.The following information pertains to that portfolio: Security Cost Fair value at 12/31/08 X $125,000 $160,000 Y 100,000 95,000 Z 175,000 125,000 $400,000 $380,000A. The Journal entry requiredto properly record the AFS ( Available for sale) securities at12/31/2017. What would be the securities fair value adjustmentaccount ?a. $30,000.b. $20,000.c. $10,000.d. $0.B. The amount of unrealized loss toappear as a component of comprehensive income for the year endingDecember 31, 2008 isa. $30,000.b. $20,000.c. $10,000.d. $0.C. The only item that impacts the AOCI for Klugman isAFS debt investment. What is the balance in the AOCI account as of12/31/2017?a. $30,000.b. $20,000.c. $10,000.d. $0.