Annette purchased stock on March 1, 2017, for $200,000 . At December 31, 2017, it was worth $210,000 . She also purchased a bond on September 1, 2017, for $20,000 . At year end, it was worth $15,000 . Determine Annette's realized and recognized gain or loss
Annette's realized gain or loss is zero and her recognized gain or loss is zero. Since a sale or other disposition has not occurred, there is no realization or recognition on either the stock or the bond.
You might also like to view...
Operating management is most effective in controlling direct costs and traceable common costs
Indicate whether the statement is true or false
Which of the following is the best example of nationalization?
A) In 1940, the city of New York purchased the bankrupt Brooklyn-Manhattan Transit rail lines. B) In 1979, Great Britain made a partial sale of British Petroleum to private investors. C) A private company contracts to manage all of a city's waste management. D) A country's economic policy calls for a balance of trade. E) A developing country receives a loan from the International Monetary Fund.
Use the cost information below for Laurels Company to determine the manufacturing costs added during the current year: Direct materials used$5,000 Direct labor used 7,000 Total factory overhead 5,100 Beginning work in process inventory 3,000 Ending work in process inventory 4,000
A. $13,600. B. $16,100. C. $18,100. D. $12,000. E. $17,100.
Fact Pattern 12-1AJesse defends against a breach-of-contract suit by College Credit Corporation by claiming that their deal¾a student loan accruing interest at a certain rate and payable beginning on a certain date¾was unfair because the consideration for their contract was inadequate.Refer to Fact Pattern 12-1A. "Adequacy" of consideration refers to
A. "how much" consideration is given. B. legally sufficient value in the eyes of the law. C. the intangible value to a contracting party of a thing exchanged. D. the substantiality of the consideration exchanged.