答案和详解如下： Q1. At the beginning of the year, Alpha Corporation purchased 10,000 shares of Beta Corporation for $20 per share. During the year, Beta paid a $2,000 cash dividend to Alpha. At the end of the year, Beta’s stock was selling for $22 per share. What amount should Alpha recognize in its year-end income statement if the investment is treated as an available-for-sale security and what amount should be recognized in the income statement if the investment is treated as a trading security? Available-for-sale
Trading security
A) $2,000 $20,000 B) $0 $22,000 C)
$2,000 $22,000 Correct answer is C) Unrealized gains and losses from trading securities are recognized in the income statement while unrealized gains and losses from available-for-sale securities bypass the income statement and are reported as other comprehensive income, a component of stockholders’ equity. Cash dividends are recognized in the income statement for both trading and available-for-sale securities. Thus, Alpha will recognize only the $2,000 dividend if the shares are considered available-for-sale and will recognize $22,000 ($2,000 dividend + $20,000 unrealized gain) if the shares are considered trading securities. Q2. What amounts should Ponca report in its year-end income statement and balance sheet as a result of its investment in securities X and Y? Income Statement
Balance Sheet
A) $30,000 unrealized gain $950,000 B)
$30,000 unrealized gain $980,000 C) No gain or loss $980,000 Correct answer is B) Trading securities are reported in the balance sheet at fair value. At the end of the year, the fair value of the securities was $980,000 ($435,000 + $545,000). The unrealized gains and losses from trading securities are recognized in the income statement. Thus, Ponca would recognize an unrealized gain of $30,000 ($980,000 fair value – $950,000 cost). Q3. When the market value of an investment in a debt security is less than its carrying value, how should the investor report the investment on the balance sheet if the security is classified as held-to-maturity and what amount should be reported if the security is classified as available-for-sale? Held-to-maturity
Available-for-sale
A) Amortized cost Fair value B) Amortized cost Amortized cost C) Fair value Fair value Correct answer is A) Held-to-maturity securities are reported on the balance sheet at amortized cost while available-for-sale securities are reported at fair value. Amortized cost includes the amortization of a premium or discount that was created when the security was purchased. | 
发表于 2009-1-17 10:44
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