Chapter 1 Problem 9-9
2008
1. Trading securities 2,900,000
Available for sale securities 3,600,000
Cash 6,500,000
2. Unrealized loss – TS 500,000
Trading securities (2,900,000 – 2,400,000) 500,000
3. Available for sale securities 400,000
Unrealized gain – AFS (3,600,000 – 4,000,000) 400,000
2009
1. Cash 1,000,000
Trading securities (1/2 x 1,400,000) 700,000
Gain on sale of TS 300,000
2. Cash 1,300,000
Unrealized gain – AFS (1/2 x 500,000) 250,000
Available for sale securities (1/2 x 2,500,000) 1,250,000
Gain on sale of AFS securities 300,000
3. Trading securities 300,000
Unrealized gain – TS (2,000,000 – 1,700,000) 300,000
Carrying value Market
Security One 700,000 900,000
Security Two 1,000,000 1,100,000
1,700,000 2,000,000
4. Available for sale securities 50,000
Unrealized gain – AFS 50,000
Security Three 1,500,000 1,600,000
Security Four 1,250,000 1,200,000
2,750,000 2,800,000
Security Three 1,600,000
Security Four (1/2 x 2,000,000) 1,000,000
Total cost 2,600,000
Market value 2,800,000
Cumulative unrealized gain – 12/31/2009 200,000
Unrealized gain – AFS 12/31/2008 (400,000 – 250,000) 150,000
Unrealized gain in 2009 50,000
Cumulative unrealized gain – 12/31/2009 200,000
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