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:

Investment Grows

The increase in the value of an investment over time through appreciation, dividends, or interest earnings.

Cumulative Voting

A voting system used in elections for directors of a company allowing shareholders to allocate all their votes to one candidate, enhancing minority shareholders' representation.

Dividend Yield

An economic ratio that illustrates the dividends a company pays out yearly in contrast to its stock price.

Voting Rights

The entitlement of shareholders to vote on certain corporate matters, such as electing the board of directors or approving major company decisions.