S&L Financial buys and sells securities which it classifies as available-for-sale. On December 27, 2018, S&L purchased Coca-Cola bonds at par for $875,000 and sold the bonds on January 3, 2019, for $880,000. At December31, the bonds had a fair value of $873,000, and S&L has the intent and ability to hold the investment until fair valuerecovers. What pretax amounts did S&L include in its 2018 and 2019 net income as a result of this investment?

S&L Financial buys and sells securities which it classifies as available-for-sale. On December 27, 2018, S&L purchased Coca-Cola bonds at par for $875,000 and sold the bonds on January 3, 2019, for $880,000. At December31, the bonds had a fair value of $873,000, and S&L has the intent and ability to hold the investment until fair valuerecovers. What pretax amounts did S&L include in its 2018 and 2019 net income as a result of this investment?

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter13: Investments And Long-term Receivables

Section: Chapter Questions

Problem 1MC

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