Explore BrainMass

Explore BrainMass

    Investment Market Value

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    SunCorp had investments in marketable equity securities costing 650,000 on June 30, year 2. Sun Corp decided to hold the investments indefinitely and accordingly reclassified them from trading to available-for-sale on that date. The investments market value was 575,000 at December 31, year 1, 530,000 at June 30, year 2 and 490,000 at December 31 year 2.

    What amount should SunCorp report as net unrealized loss on available-for-sale marketable equity securities in its year 2 statement of stockholders' equity?

    a) 40,000
    b) 45,000
    c) 85,000
    d) 160,000

    © BrainMass Inc. brainmass.com June 4, 2020, 3:07 am ad1c9bdddf
    https://brainmass.com/business/finance/investment-market-value-499933

    Solution Preview

    The answer to this question is:

    B. $45,000

    This is because when marketable equity ...

    Solution Summary

    The expert determines the amount SunCorp should report as net unrealized loss on available-for-sale marketable equity securities in its year two statement of stockholder' equity.

    $2.19

    ADVERTISEMENT