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short-term differences in price purchased the following trading secu

short-term differences in price purchased the following trading secu

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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HARLINGTON COMPANY buys and sells securities expecting to earn profits on short-term differences in price. purchased the following trading securities: During 2016, Harlington Company Fair Value Dec. 31, 2016 P 675,000 486,000 2,034,000 Security Cost P 585,000 900,000 1,980,000 A. B Before any adjustments related to these trading securities, Harlington Company had net income of P2,700,000. 1. What is Harlington's net income after making any necessary trading security adjustments ? A. P2,430,000 B. P2,286, 000 C. P2,934,000 D. P2,700,000 2. What woould Harlington's net income be if the fair value of security B were P855,000? A. P2,601,000 B. P2,799,000 C. P2,700,000 D. P2,655,000
Transcribed Image Text:HARLINGTON COMPANY buys and sells securities expecting to earn profits on short-term differences in price. purchased the following trading securities: During 2016, Harlington Company Fair Value Dec. 31, 2016 P 675,000 486,000 2,034,000 Security Cost P 585,000 900,000 1,980,000 A. B Before any adjustments related to these trading securities, Harlington Company had net income of P2,700,000. 1. What is Harlington's net income after making any necessary trading security adjustments ? A. P2,430,000 B. P2,286, 000 C. P2,934,000 D. P2,700,000 2. What woould Harlington's net income be if the fair value of security B were P855,000? A. P2,601,000 B. P2,799,000 C. P2,700,000 D. P2,655,000
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