Masma Corp $$\begin{array} { l l } \text { Total cast } & \$ 182,400 \\\text { Total feir market value } & 153,600\end{array}$$

question 71

Multiple Choice

Masma Corp. began operations in 2020. An analysis of Masma's equity securities portfolio acquired in 2020 shows the following totals at the end of the year. Masma accounts for these investments using the fair value through net income (FV-NI) model. $$\begin{array} { l l } \text { Total cast } & \$ 182,400 \\\text { Total feir market value } & 153,600\end{array}$$ Based on this information, what amount should Masma report in its 2020 income statement for "Investment Income or Loss"?

• A) $ 12,800 loss
• B) $ 16,000 gain
• C) $ 28,800 gain
• D) $ 28,800 loss

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Definitions:

Sales Price

The amount a customer pays or is charged for a product or service.

Part Replacement

The process of substituting a defective, broken, or outdated component of a machine or system with a new one.

Radioactive Materials

Substances that emit radiation, often used in medical treatments, research, and power generation.

Contingent Liabilities

Liabilities that may occur depending on the outcome of a future event.