The Following Information Is Available for an Enterprise's Security Investments

question 33

Multiple Choice

The following information is available for an enterprise's security investments as of December 31, 2011:

In June 2012, the enterprise decided to reclassify the Wal-Mart bonds as securities available-for-sale. The bonds had a market value of $31,000 at the time of the reclassification.
What amount of holding gain or loss is immediately recognized in 2012 earnings?

• A) $2,000 gain
• B) $3,000 gain
• C) $1,000 gain
• D) $1,000 loss

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Definitions:

Steps Involved

A series of actions or processes that are taken in order to achieve a particular end.

Effective Questionnaire

A carefully designed set of questions aimed at gathering reliable and relevant information from respondents.

Feasibility Report

A document that assesses the practicality and potential success of a proposed project or system.

Statement of Purpose

A written document that outlines an individual's intentions, goals, and reasons for applying to a specific program, job, or opportunity.