Reference no: EM133185118

Question - A) The following information relates to Butte Company for 2020: Realized gain on sale of available-for-sale debt securities $38,000 Unrealized holding gains arising during the period on available-for-sale debt securities 79,000 Reclassification adjustment for gains included in net income 28,000 Butte's 2020 comprehensive income is?

B) On December 31, 2017, Camp Three Company purchased debt securities as trading securities. Pertinent data are as follows: Fair Value

Security Cost At 12/31/18

A $168,000 $143,000

B 234,000 251,000

C 192,000 181,000

On December 31, 2018, Camp Three transferred its investment in security C from trading to available-for-sale because Camp Three intends to retain security C as a long-term investment. What total amount of gain or loss on its securities should be included in Camp Three's income statement for the year ended December 31, 2018?

Cardwell Corp began operations in 2018. An analysis of Cardwell's debt securities portfolio acquired in 2018 shows the following totals at December 31, 2018 for trading and available-for-sale debt securities: Trading Available-for-Sale

Securities Securities

Aggregate cost $194,000 $425,000 Aggregate fair value 172,000 427,000

C) What amount of gain or loss should Cardwell report in its 2018 income statement?

D) What amount of gain or loss should Cardwell report in its 2018 other comprehensive income?

E) Carter Company acquired a 65% interest in Chouteau Corporation on December 31, 2020 for $2,465,000. During 2021, Chouteau had net income of $1,200,000 and paid cash dividends of $400,000. At December 31, 2021, the balance in the investment account should be?