Glover Buys and Sells Securities and Typically Classifies Them as Available

question 5

Multiple Choice

Glover buys and sells securities and typically classifies them as available for sale.On December 15,Glover purchased $700,000 of Mooney Corporation shares and elected the fair value option to account for the investment.As of December 31,the shares in Mooney Corporation had a fair value of $675,000.In its December 31 financial statements,Glover will report pretax ________.

• A)Investment loss of $75,000 in its income statement.
• B)Other comprehensive income/loss of $25,000.
• C)An investment in Mooney Corporation of $700,000
• D)Accumulated other comprehensive income of $675,000

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Definitions:

Value Chain Philosophy

An approach focusing on the full range of activities required to create and deliver a product or service to consumers, emphasizing the addition of value at each step.

Product Delivery

The process that encompasses all steps from the placing of orders to the final receipt of a product by the end consumer, including shipping and handling.

Quality Issues

Problems associated with the inability of a product or service to meet specified standards or expectations.

Learning Organisations

Companies that continuously facilitate the learning of their members and transform themselves accordingly.