Dec
30
SELL BONDS PIROR TO MATURITY.ACCOUNTING QUESTION, HELP NEEDED?
ByPhyllis H asked:
On Jan 1, 2008, Tifosi Corp. purchases holds with a face worth of $100,000 and a face rate of 5%. Interest is paid annually each Dec 31, and the holds grown up on Dec 31, 2012. The marketplace seductiveness rate is 6% on the date of purchase. On Dec 31, 2008, the holds have a satisfactory marketplace worth of $97,000. If Tifosi deliberate the holds to be accessible for sale, what is the benefit (or loss) which should be famous in alternative extensive income?
On Jan 1, 2008, Tifosi Corp. purchases holds with a face worth of $100,000 and a face rate of 5%. Interest is paid annually each Dec 31, and the holds grown up on Dec 31, 2012. The marketplace seductiveness rate is 6% on the date of purchase. On Dec 31, 2008, the holds have a satisfactory marketplace worth of $97,000. If Tifosi deliberate the holds to be accessible for sale, what is the benefit (or loss) which should be famous in alternative extensive income?
1 Comments
January 2nd, 2010 at 12:44 pm
None, according to GAAP, the gain or loss of a security held available for sale is held in a separate equity account for unrealized gains and losses and not shown as income until sold.
Well, you do have to recognize the interest income of $5,000. But there is no capital gains income.