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    Equity Securities : Expressing Losses

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    Boulter, Inc. began business on January 1, 2006. At the end of December 2006, Boulter had the following investments in equity securities:

    Trading Available for Sale
    Cost 60,000 110,000
    Market Value 54,000 107,500

    All declines in value are deemed to be temporary in nature. How should the corresponding losses be reflected in the financial statement at December 31, 2008?

    Income Separate Component of Shareholders' Equity
    A) 8,500 0
    B) 0 8,500
    C) 6,000 2,500
    D) 2,500 6,000

    A. Item A
    B. Item B
    C. Item C
    D. Item D

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    Solution Preview

    Equity Securities

    Boulter, Inc. began business on January 1, 2006. At the end of December 2006, Boulter had the following investments in equity securities:

    Trading Available for Sale
    Cost ...

    $2.19

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