Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN: 9781337788281
Author: James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher: Cengage Learning
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Please given correct answer general accounting
Transcribed Image Text:A company buys ten shares of securities (common stock) at
$1,000 each on January 15, year 1. The securities are classified
as available-for-sale. The fair value of the securities increases to
$1,250 per share as of December 31, year 1. Assume no
dividends are paid and that the company has a 30% tax rate on
profits. What is the amount of the holding gain arising during the
period after taxes that is classified in other comprehensive
income for the period ending December 31, year 1?
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