Gain on Sale of Debt Investments 150
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Multiple Choice Question 117
At the end of its first year, the trading securities portfolio consisted of
the following common stocks.
Cost Fair Value
Atrium Corporation $ 46,400 $ 50,000
Barnes Inc. 60,000 55,800
Cantor Corporation 80,000 76,000
$186,400 $181,800
In the following year, the Barnes common stock is sold for cash
proceeds of $56,000. The gain or loss to be recognized on the sale is a
loss of $4,000.
gain of $1,200.
gain of $200.
loss of $4,200.
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Multiple Choice Question 40
At the time of acquisition of a debt investment,
the Stock Investments account is debited when bonds are purchased.
the Investment account is credited for its cost plus brokerage fees.