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Equity Securities : Expressing Losses

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Boulter, Inc. began business on January 1, 2006. At the end of December 2006, Boulter had the following investments in equity securities:

Trading Available for Sale
Cost 60,000 110,000
Market Value 54,000 107,500

All declines in value are deemed to be temporary in nature. How should the corresponding losses be reflected in the financial statement at December 31, 2008?

Income Separate Component of Shareholders' Equity
A) 8,500 0
B) 0 8,500
C) 6,000 2,500
D) 2,500 6,000

A. Item A
B. Item B
C. Item C
D. Item D

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Equity Securities

Boulter, Inc. began business on January 1, 2006. At the end of December 2006, Boulter had the following investments in equity securities:

Trading Available for Sale
Cost ...

Purchase this Solution


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