Question

Lang Corporation buys and sells debt securities which it classifies as available-for-sale securities. The company's fiscal year ends on December 31. On December 27, 2021, Lang purchased Northwest Communications bonds at par for $550,000. At December 31, the bonds had a fair value of 574,000. On January 3, 2022, the bonds were sold for $590,000. The amount included in 2022 Lang's other comprehensive income as a result of this investment would be: 

(Do not add dollar sign; do not odd comma by yourself to your amount round the answer to the whole number, use minus sign if the amount is negotive) 

Answer 1

24000 since bonds shall be revalued to Rs 574000 at fair value on closing date which is 31st december so a gain on revaluation of securities amounting to Rs 24000 (574000-550000) shall arise which will be shown as other comprehensive income.