The Following Information Is Available for an Enterprise's Security Investments

question 52

Multiple Choice

The following information is available for an enterprise's security investments as of December 31,2014:

-In June 2015,the enterprise decided to reclassify the Mingo stock as trading securities.The stock had a market value of $41,000 at the time of the reclassification. What amount of holding gain or loss is immediately recognized in 2015 earnings?

• A) $2,000 gain
• B) $1,000 gain
• C) $3,000 gain
• D) $1,000 loss

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Definitions:

12-Gauge Copper

12-Gauge Copper is a specific size of copper wire, often used in electrical wiring, characterized by its diameter and carrying capacity.

Electrical Wire

Conductor material used to make electrical connections and transmit electrical power or signals.

Roll

A document or a list typically used for record-keeping or to account for members in attendance.

Waterfront Restaurant

A dining establishment located adjacent to a body of water, such as a ocean, river, or lake, often featuring scenic views.