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In 2018, Cromwell Corporation purchased bonds of Oliver Company at par for $300,000 and classified the...

In 2018, Cromwell Corporation purchased bonds of Oliver Company at par for $300,000 and classified the investment as available-for-sale. In 2019, the market value declined to $200,000. In 2020, the market value of the Fleming stock rose to $230,000, and the stock was sold. How much should Cromwell record as a realized gain or loss in its determination of net income for 2020

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Answer #1
In the given question Cost price is = $300000
Fair value = $230000
Realised Gain /loss = Fair value - Cost price
realised gain/loss = 230000-300000
Realised Gain/loss = 70000
Therefor Loss = $70000
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