Rhoads Purchased Common Shares of Company a and B for $10,000

question 33

Multiple Choice

Rhoads purchased common shares of Company A and B for $10,000 and $10,000, respectively on 12/15. Rhoads intends to sell these securities within 30 days. At 12/31, Investments in Company A & B had a fair value of $9,000 and $18,000, respectively. Assuming Rhoads has no significant influence over the investee companies, what is the unrealized gain or loss for these securities and how is it reported?

• A) Unrealized Loss of $1,000, Unrealized Gain of $8,000, both reported as part of Net Income
• B) Unrealized Gain of $7,000, reported as part of Other Comprehensive Income
• C) Unrealized Loss of $1,000, Unrealized Gain of $8,000, both reported as part of Other Comprehensive Income
• D) Unrealized Gain of $7,000, reported as part of Net Income

---

Definitions:

Baby Boomer

A term used to refer to an individual born during the post-World War II baby boom between 1946 and 1964.

Introduction to Psychology

A foundational course or text that covers the basic principles, theories, and applications of psychology.

Episodic Memories

Refers to the ability to recall and mentally re-experience specific episodes from one's personal past.

Cognitive Skills

Mental abilities that involve the processing of information and knowledge, including thinking, reasoning, and problem-solving.