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:

Alternator

A machine used to generate AC by rotating conductors through a magnetic field.

Capacitance

The ability of a system to store an electrical charge per unit voltage, represented in farads.

Line Current

The current that flows through the conductors of an electrical distribution system or in any single conductor.

Inductance

A characteristic of an electrical conductor wherein an alteration in the current passing through it generates an electromotive force within the conductor and in nearby conductors due to mutual inductance.