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Question

In 2008, Metro Corp. bought stock and classified it as available-for-sale securtities. The original cost was $16,000, the fair value at the end of 2008 was $16,500, and the fair value at the end of 2009 was $17,000. Would there be an unrealized gain shown in stockholder's equity of $1,000?

Submitted: 389 days and 21 hours ago.
Category: Finance
Value: $9
Status: CLOSED

Accepted Answer

Yes the whole unrealized gain of 1000 will be shown as a part of comprehensive income and hence reported as shareholder's equity.

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Expert: Amol Srivastava
Pos. Feedback: 100.0 %
Accepts: 313
Answered: 2/24/2009

Accountant

More than 4years + of industry experience ,CFA level2 cleared, Chartered Accountant from India

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