Business, 06.06.2020 21:05 ella3714

Beresford Inc. purchased several investments in debt securities during 2020, its first year of operations. The following information pertains to these securities. The fluctuations in their fair values are not considered permanent. Fair Value Fair Value Amortized Cost Amortized Cost
Held to Maturity Securities 12/31/2012 12/31/2013 12/31/2012 12/31/2013
ABC Co. Bonds $375,000 $400,000 $367,500 $360,000

Fair Value Fair Value Cost
Trading Securities 12/31/2012 12/31/2013
DEF Co. Stock $48,000 $59,500 $66,000
GEH Inc. Stock $47,000 $77,000 $39,000
IJK Inc. Stock $44,000 $38,500 $32,900

Fair Value Fair Value
Available for Sale Securities: 12/31/2012 12/31/2013 Cost
LMN co. Stock $130,500 $150,400 $140,000

Required:
a. What balance sheet amount would Beresford report for its total investment securities at 12/31/2012?
b. What would be the balance in Beresford's accumulated other comprehensive income with respect to these investments in its 12/31/2013 balance sheet (ignore taxes)?
c. What total unrealized holding gain would Beresford report in its 2013 income statement relative to its investment securities?

Answers: 3

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Beresford Inc. purchased several investments in debt securities during 2020, its first year of opera...

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