Griffin Buys and Sells Securities and Typically Classifies Them as Available

question 135

Multiple Choice

Griffin buys and sells securities and typically classifies them as available for sale.On December 15,Griffin purchased $800,000 of Baker Corporation shares and elected the fair value option to account for the investment.As of December 31,the shares in Baker Corporation had a fair value of $875,000.In its December 31 financial statements,Griffin will report pretax ________.

• A)Investment income of $75,000 in its income statement
• B)Other comprehensive income of $75,000
• C)An investment in Baker Corporation of $800,000
• D)Accumulated other comprehensive income of $875,000

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Definitions:

School Year

The period of the year during which students attend school to receive instruction, typically running from late summer or early autumn to late spring or early summer.

Immediate Abolition

The immediate and unconditional ending of slavery, without any phase-out period, advocated by certain abolitionist groups before and during the American Civil War.

William Lloyd Garrison

An American abolitionist, journalist, suffragist, and social reformer best known for his anti-slavery newspaper "The Liberator" and for founding the American Anti-Slavery Society.

James G. Birney

An American abolitionist leader who ran for President of the United States as a candidate of the Liberty Party, advocating for the end of slavery.