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ACC - During 2010, JAT Company

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Question;During 2010, JAT Company purchased trading securities as a short-term investment. The costs ofthe securities and their market values on December 31, 2012, are listed below.Security Cost Market Value(December 31, 2012)A $400,000 $200,000B 200,000 225,000C 500,000 600,000JAT had no trading securities in the years before 2012. Before any adjustments related to thesetrading securities, JAT had net income of $900,000 in 2012.1. What is net income (ignoring income taxes) after making any necessary trading securityadjustments?2. What would net income be if the market value of Security A were $350,000?

 

Paper#39519 | Written in 18-Jul-2015

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