Purchase Solution

This post addresses the gain/loss on securities for Patel Co

Not what you're looking for?

Ask Custom Question

On December 31, 2010, Patel Co. purchased equity securities as trading securities. Pertinent data are as follows:

Security Cost Fair Value At 12/31/11
A $132,000 $117,000
B 168,000 186,000
C 288,000 258,000

On December 31, 2011, Patel transferred its investment in Security C from trading to available for sale because Patel intends to retain Security C as a long-term investment. What total amount of gain or loss on its securities should be included in Patel's income statement for the year ended December 31, 2011?

a) 3,000 gain
b) 27,000 loss
c) 30,000 loss
d) 45,000 loss

Purchase this Solution

Solution Summary

The solution provides the correct calculations needed to determine the total amount of gain or loss on securities to be included in Patel's income statement.

Purchase this Solution


Free BrainMass Quizzes
Team Development Strategies

This quiz will assess your knowledge of team-building processes, learning styles, and leadership methods. Team development is essential to creating and maintaining high performing teams.

Understanding the Accounting Equation

These 10 questions help a new student of accounting to understand the basic premise of accounting and how it is applied to the business world.

Balance Sheet

The Fundamental Classified Balance Sheet. What to know to make it easy.

Accounting: Statement of Cash flows

This quiz tests your knowledge of the components of the statements of cash flows and the methods used to determine cash flows.

Business Processes

This quiz is intended to help business students better understand business processes, including those related to manufacturing and marketing. The questions focus on terms used to describe business processes and marketing activities.