ABC Inc Purchased Shares of DEF Inc as Follows

question 94

Multiple Choice

ABC Inc purchased shares of DEF Inc as follows:

June 30^th, 2013 4,000 shares @ $3 per share $12,000
June 30^th, 2014 3,000 shares @ $4 per share $12,000
June 30^th, 2015 3,000 shares @ $6 per share $18,000

The shares are considered to be passive investments. ABC Inc. has a December 31^st, year-end.
The market value of the DEF shares at each year-end was as follows:
December 31^st, 2013 $3.50 per share
December 31^st, 2014 $5.00 per share
December 31^st, 2015 $5.50 per share
On July 1^st, 2015, ABC sold half its shares in DEF Inc. for $6.50 per share.

-Assuming that the shares are designated an FVTPL investment, the effect on ABC's 2013 income as a result of owning the DEF shares would be:

• A) Nil
• B) A $2,000 unrealized holding loss.
• C) A $2,000 unrealized holding gain.
• D) A $4,000 unrealized holding gain.

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Definitions:

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Factors in an individual's surroundings that can influence their development, behavior, and health.

Socioeconomic Classes

Categories of people living together in a society who have a similar level of wealth, education, and occupational prestige.

Down Syndrome

A genetic disorder caused by the presence of an extra chromosome 21, characterized by physical growth delays, characteristic facial features, and varying degrees of intellectual disability.

Extra Chromosome

An additional chromosome in the genetic makeup of an individual, which can lead to developmental abnormalities or genetic disorders, such as Down syndrome.