Sloan Company has owned a debt securities investment during 2021 that has increased in fair value. After all closing entries for 2021 are completed, the effect of the increase in fair value on total shareholders' equity would be:

Question

05-12-2019
Business

contestada

Sloan Company has owned a debt securities investment during 2021 that has increased in fair value. After all closing entries for 2021 are completed, the effect of the increase in fair value on total shareholders' equity would be:

Respuesta :

Otras preguntas

Which three components are characteristic of a Pitch Deck? (Choose three) Question 34 options: Highly Visual 10-100 pages Highly Text-Based 10-20 slides Used to

Find the least common denominator (LCD) of

When Standard Oil controlled 90-95% of the market in oil , what is this called?

does anyone have any tips on learning spanish faster?

PLEASE HELP! (Simplifying the square root!)

Write an equation of the line passing through point P(0, 0) that is perpendicular to the line y = −9x−1. y = ?

i need help with this problem,

The Progress of Love by Jean-Honore Fragonard. A woman and a man sit in a garden with angelic statues. What is depicted in the image above?

PLS HELP ASAP ILL GIVE BRAINLKEST THANKS

Cecelia bought a necklace for $7.00. She had to pay a 9% tax. How much sales tax did Sue have to pay?

jepessoa jepessoa · Answer 1 · 2019-12-10T01:16:02+01:00

Answer:

This securities investment classifies as unrealized gains, as it has to be reported in the balance sheet under shareholder equity in the Accumulated Other Comprehensive Income account.

Explanation:

Unrealized gains (or losses) only exit on paper, since the company cannot recognize the gains until it sells the securities. It is an estimate of the profits that the company can make when it sells the securities, but until it does, they cannot be included in the income statement.