At the End of Its First Year, the Equity Securities

question 164

Multiple Choice

At the end of its first year, the equity securities portfolio consisted of the following common stocks. In the following year, the Edmunds common stock is sold for cash proceeds of $57,000. The gain or loss to be recognized on the sale is a

• A) gain of $1,200.
• B) loss of $3,000.
• C) gain of $10,600.
• D) loss of $1,200.

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Definitions:

Liking

The pleasure that follows receipt of a reward.

Similarity

In perception, a principle by which we tend to group like figures, especially by color and orientation.

Liking

A positive feeling of affection or preference towards someone or something.

Attribution of Arousal Theory

A theory in social psychology that suggests people make attributions about the source of their arousal or emotional states, which can influence their emotions and behaviors.