Angular Co

question 57

Multiple Choice

Angular Co.purchased the following portfolio of available-for-sale securities during 2014 and reported the following balances at December 31,2014.No sales occurred during 2014.All declines are considered to be temporary.

Angular Co.should report what amount related to the securities transactions in its 2014 income statement?

• A)$0
• B)$2,000 unrealized loss
• C)$10,000 unrealized loss
• D)$12,000 unrealized loss

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Definitions:

Cash Dividends

Payments made in cash to shareholders, typically derived from a corporation's earnings, as a way of distributing profits back to shareholders.

Fair Price

Generally refers to a valuation that accurately reflects an asset's current worth, considering all relevant factors such as market conditions and future earnings potential.

Grow at

Refers to the rate at which a particular variable or measurement, such as company revenue or population, increases over a specified period of time.

Required Return

The minimum return an investor expects to achieve from an investment, considering its risk level.