Kipper Corp.began operations in 2017.An analysis of Kipper's equity securities portfolio acquired in 2017 shows the following totals at the end of the year.Kipper accounts for these investments using the fair value through net income (FV-NI)model. Based on this information, what amount should Kipper report in its 2017 income statement for "Investment Income or Loss"?
A)$16,000 loss
B)$20,000 gain
C)$36,000 gain
D)$36,000 loss

Question

Kipper Corp.began operations in 2017.An analysis of Kipper's equity securities portfolio acquired in 2017 shows the following totals at the end of the year.Kipper accounts for these investments using the fair value through net income (FV-NI)model.  Based on this information, what amount should Kipper report in its 2017 income statement for "Investment Income or Loss"?
A)$16,000 loss 
B)$20,000 gain 
C)$36,000 gain 
D)$36,000 loss

Quizplus · Accepted Answer

The Answer of Kipper Corp.began operations in 2017.An analysis of Kipper's equity securities portfolio acquired in 2017 shows the following totals at the end of the year.Kipper accounts for these investments using the fair value through net income (FV-NI)model.  Based on this information, what amount should Kipper report in its 2017 income statement for "Investment Income or Loss"?
A)$16,000 loss 
B)$20,000 gain 
C)$36,000 gain 
D)$36,000 loss