Kipper Corp

question 36

Multiple Choice

Kipper Corp.began operations in 2017.An analysis of Kipper's equity securities portfolio acquired in 2017 shows the following totals at the end of the year.Kipper accounts for these investments using the fair value through net income (FV-NI) model. Based on this information, what amount should Kipper report in its 2017 income statement for "Investment Income or Loss"?

• A)$16,000 loss
• B)$20,000 gain
• C)$36,000 gain
• D)$36,000 loss

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Definitions:

Total Asset Turnover

A financial ratio that measures a company's efficiency in using its assets to generate revenue.

Balance Sheet

A snapshot report of a company's assets, liabilities, and shareholder equity at a specific time.

Income Statement

A financial statement that shows a company's revenues, expenses, and profits or losses over a specific period.

Total Asset Turnover

A financial ratio that measures a company's ability to generate sales from its assets by comparing sales with average total assets.