Amacon Corporation Has the Following Investments at December 31, 2020

question 2

Multiple Choice

Amacon Corporation has the following investments at December 31, 2020:
$\begin{array}{|l|r|r|r|r|}\hline & \text { Historical cost } & \begin{array}{r}\text { Fair value } \\\text { Sept } 30,2019\end{array} & \begin{array}{r}\text { Fair value } \\\text { Sept 30, 2020 }\end{array} & \begin{array}{r}\text { Fair value } \\\text { Dec 31, 2020 }\end{array} \\\hline \text { Shares of DEF } & \$ 25,000 & \$ 15,000 & \$ 25,000 & \$ 30,000 \\\hline \begin{array}{l}\text { Bonds of Brooke } \\\text { (purchased at par value) }\end{array} &10,000 &12,000 & 11,000 & 12,500 \\\hline \text { Shares of CooksTown } & 12,000 & 18,000 & 16,000 & 16,000 \\\hline \text { Shares of Daisy } & 18,000 & 16,500 & 19,500 & 20,500 \\\hline\end{array}$

-According to the above table.If Amacon classifies its investment in DEF at fair value through OCI, what amount will be reported in other comprehensive income at December 31, 2020?

• A)$3,000 loss.
• B)$3,000 gain.
• C)$5,000 gain.
• D)$30,000

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Definitions:

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