Question

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.

Held-to-Maturity Securities:	Fair Value 12/31/2020			Fair Value 12/31/2021			Amortized Cost 12/31/2020			Amortized Cost 12/31/2021
ABC Co. Bonds	$	389,000		$	414,000		$	381,500		$	374,000
Trading Securities:	Fair Value 12/31/2020			Fair Value 12/31/2021			Cost
DEF Co. Bonds	$	59,000		$	70,000		$	75,400
GEH Inc. Bonds	$	61,000		$	91,000		$	53,000
IJK Inc. Bonds	$	58,000		$	52,500		$	46,900
Available-for-Sale Securities:	Fair Value 12/31/2020			Fair Value 12/31/2021			Cost
LMN Co. Bonds	$	153,400		$	166,700		$	154,000

What would be the balance in Beresford's accumulated other comprehensive income with respect to these investments in its 12/31/2021 balance sheet (ignore taxes)?

Multiple Choice

Top of Form

$19,900.

None of these answer choices are correct.

$580,700.

$12,700.

Answer 1

Answer:
Any Change in fair value of Available-for-Sale Securities will be reported under Accumulated other comprehensive income.
Accumulated other comprehensive income with respect to these investments                = Fair Value (-) Cost                 = $ 166,700 (-) $ 154,000                 =   $ 12,700	$ 12,700
Option (d) is Correct