Ask Question
27 November, 01:36

Dim Corporation purchased 1,000 bonds of Witt Corporation in 2015 for $790 per bond and classified the investment as securities available for sale. The value of these holdings was $272 per bond on December 31, 2016, and $404 on December 31, 2017. During 2018, Dim sold all of its Witt bonds at $490 per share. In its 2018 income statement, Dim would report:

+3
Answers (1)
  1. 27 November, 02:59
    0
    In the income statemnt for 2018

    Gain on Sale of Bonds 86,000

    Explanation:

    This securities available for sale will be measurement at fair value, through profit and loss

    2018 Beginning Valuation

    1,000 bonds x 404 = 404,000

    Value at sale

    1,0000 x 490 = 490,000

    Gain on Sale of Bonds 86,000
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Dim Corporation purchased 1,000 bonds of Witt Corporation in 2015 for $790 per bond and classified the investment as securities available ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers