Information regarding Dude Co.’s portfolio of available-for-sale securities is a
ID: 2415584 • Letter: I
Question
Information regarding Dude Co.’s portfolio of available-for-sale securities is as follows:
Aggregate cost as of 12/31/05
$170,000
Unrealized gains as of 12/31/05
4,000
Unrealized losses as of 12/31/05
26,000
Net realized gains during 2005
30,000
At December 31, 2004, Stone reported an unrealized holding loss from available-for-sale securities of $1,500 on the statement of stockholders’ equity. What amount should Stone report on its December 31, 2005, balance sheet as an unrealized holding loss?
$26,000
$22,000
$20,500
None of the above
Aggregate cost as of 12/31/05
$170,000
Unrealized gains as of 12/31/05
4,000
Unrealized losses as of 12/31/05
26,000
Net realized gains during 2005
30,000
Explanation / Answer
Answer is $22,000.
Explanation
$22,000($26,000-$4000) => As of indiactes final 2005 balance in the AOCI account.