A company has shares in 3M Company stock that it originally bought for $100,000. On 3/31/2013, this investment was valued at $130,000 on the balance sheet. On 4/4/2013, the company sells the stock for $110,000. The company accounts for this investment using the Trading Securities method. How will this transaction show up on the income statement?
a. Loss on the sale of investments of $20,000
b. Loss on the sale of investments of $10,000
c. Gain on the sale of investments of $20,000
d. Gain on the sale of investments of $10,000
e. It will not affect the income statement

Company A

On the income statement, this transaction will show up as:

a. Loss on the sale of investments of $20,000

Explanation:

a) Data and Analysis:

Original cost of shares in 3M Company =          $100,000

Investment value on 3/31/2013 =                          130,000

Increase in investment value (Unrealized gain) = 30,000

Sales proceeds for the investment  =                   110,000

The unrealized gain of $30,000 is now reduced to a reduced gain of $10,000.  The net effect is a loss on the sale of the investments of $20,000 ($30,000 - $10,000).      

the investment was $14,174.196

explanation:

a lump sum means that the father of the example made one deposit and leave it be.

we need to know the value of a capital that generated at 4.05% per year during 28 years the sum of $48,613.24

now clearing the formula to solve for capital we got:

and we reach the answer investment = $14,174.20

hi,

henry is an economist and wants to understand the relationship between inflation and consumer spending habits. for his research, he needs the consumer price index for 2014 and the inflation rate. based on the prices of goods given, what will he find to be the cpi and inflation rate for 2014? assume that a consumer’s basket for three consecutive years consists of the following:

you dont privide answer choices.

answer - 15% of a inflatation rate is 15% less in cpi