Ask Question
10 May, 10:31

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:

+1
Answers (1)
  1. 10 May, 11:09
    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?
Get 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 there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers