Laski Corp

question 101

Multiple Choice

Laski Corp. holds two held for trading investments and has decided to use the fair value through profit or loss model. At year end, one has an unrealized gain of $2,000 and the other has an unrealized loss of $4,500. The held for trading investments would be reported at fair value and Laski Corp. would report a net unrealized loss of

• A) $2,500 in the income statement.
• B) $4,500 in the income statement.
• C) $2,500 in the statement of comprehensive income.
• D) $4,500 in the statement of comprehensive income.

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Definitions:

Cost Estimates

An evaluation or approximation of the likely expenses involved in the execution of a project or production of a good.

Goodwill

The positive reputation and relationship a business maintains with its customers, employees, and community, often considered an intangible asset.

Favorable Response

A positive or approving reaction to a query, proposal, or situation.

Logical Order

An arrangement of ideas or elements that follows a coherent sequence, ensuring clarity and enhancing the effectiveness of communication.