Question

eremiah Corporation purchased debt securities during 2018 and classified them as securities available for sale: Security Cost Fair Value, 12/31/2018 A $ 40,000 $ 49,000 B 70,000 66,000 C 28,000 39,000 All declines are considered to be temporary. How much gain will be reported by Jeremiah Corporation in the December 31, 2018, income statement relative to the portfolio

Answer 1

there is no gain will be report in income statement relative to the portfolio that is zero

Step-by-step explanation:

given data

Security Cost Fair Value

A 40000 49000

B 70000 66000

C 28000 39000

to find out

How much gain will be reported by Jeremiah Corporation

solution

we know that unrealized holding gains or loss is not include in earning for securities classified as available for sale

so at 31st December 2018

so here we can say that no gain will be report in income statement relative to the portfolio is zero