Question 1:
The following are available-for-trading securities being held by Aladdin Company. The amount are in $1,000s.
| End of fiscal year 2012 | End of fiscal year 2011 | |||
| Cost | FMV | Cost | FMV | |
| Stock in Alfa Company | $900 | $1,400 | $900 | $1,200 |
| Stock in Beta Company | $900 | $1,100 | $900 | $800 |
| Stock in Charlie Company | $1,000 | $700 | $1,100 | $1,000 |
| Stock in Delta Company | $1,000 | $700 | $1,100 | $1,500 |
| $3,800 | $3,900 | $4,000 | $4,500 | |
A) How much did Aladdin Company report on their 2011 balance sheet to reflect the above securities?
B) How much did Aladdin Company report on their 2012 balance sheet to reflect the above securities?
C) How much did they report as unrealized gain or loss in 2012 to reflect the above securities?
Question 2:
Assume the above securities are classified as trading securities.
A) Determine the amount of unrealized gain or loss to be recognized in 2011.
B) Determine the amount of unrealized gain or loss to be recognized in 2012.
C) Determine the amount to report for these investments on the end of the year 2011 and 2012 balance sheets.
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