Question

Question Completion Status: estion 16 1 points Md South has three debt securities during 2020 and 2021, its first two years of operations. The following information pertains to these securities. The fluctuations in these fair values are not considered permanent Securities Fair Value Fair Value Amortized Cost [12/31/2020) (12/31/2021) (12/31/2020) Amortized Cou (12/31/2021) $350,000 5400,000 $380,000 $350 000 HTM Security ABC Co. Bonds Trading Security DEFC. Bonds AFS Security GH EM 548.000 560,000 $70,000 365.000 $130.000 5150.000 $140,000 5145,000 What unrealized holding gain would Mid South report in its 2021 income statement relative to its investments in bonds? 057.000 O 1517.000 O c $22.000 None of these answer choices are connect 0 22.000 Moving to another question will see this response 5 % 5 6 8 O E R T Y U T o Р S D F G H J к L Х C с V B N M V. an 22 command option

Answer 1

The correct answer is d) None of these answer choices are correct.

Supporting explanations:

ABC Co. Bonds - Unrealized holding gain in 2021 ($400,000 - $350,000)	$50,000
DEF Co. Bonds - Unrealized holding loss in 2021 ($60,000 - $65,000)	($5,000)
GHI Bonds - Unrealized holding gain in 2021 ($150,000 - $145,000)	$5,000
Total Unrealized gain	$50,000

Hence, the none of the answer is correct.