(Solution) - Multiple Choice Question 1 The gain on trading securities reported on -(2025 Original AI-Free Solution)

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Multiple Choice Question
1. The gain on trading securities, reported on the 2013 income statement, is
a. $20,000
b. $25,000
c. $45,000
d. $60,000
2. The gain on AFS securities, reported on the 2013 income statement, is
a. $ 3,000
b. $ 4,000
c.$ 9,000
d. $10,000
3. Investment in HTM securities, reported on the December 31, 2013, balance sheet is
a. $203,846
b. $204,938
c. $207,544
d. $207,997
Additional information:
a. The HTM securities are $200,000 face value debt securities purchased on January 1, 2011 at a yield of 4%. The securities have a 4-year total life and pay interest annually on December 31, at a coupon rate of 6%.
b. The trading securities on hand on January 1 were sold in 2013 for $180,000.
c. More trading securities were purchased for $100,000. They are still on hand at December 31, 2013, and have a fair value of $125,000.
d. AFS securities, originally purchased for $26,000 and with a January 1, 2013 carrying value of $25,000, were sold for $29,000.
e. AFS securities on hand at December 31, 2013 have a fair value of $81,000.