The 2016 annual report of Major Bank Corp includes the following footnote related to its available-for-sale securities:
A. What amount will Major Bank report for available-for-sale equity securities on the balance sheet? Explain.
B. How do unrealized gains arise on these available-for-sale equity securities?
C. How do these unrealized gains affect Major Bank's 2016 income statement?
D. How do these unrealized gains affect Major Bank's' 2016 balance sheet?

Question

The 2016 annual report of Major Bank Corp includes the following footnote related to its available-for-sale securities:
  A. What amount will Major Bank report for available-for-sale equity securities on the balance sheet? Explain.
B. How do unrealized gains arise on these available-for-sale equity securities?
C. How do these unrealized gains affect Major Bank's 2016 income statement?
D. How do these unrealized gains affect Major Bank's' 2016 balance sheet?

Quizplus · Accepted Answer

The Answer of The 2016 annual report of Major Bank Corp includes the following footnote related to its available-for-sale securities:
  A. What amount will Major Bank report for available-for-sale equity securities on the balance sheet? Explain.
B. How do unrealized gains arise on these available-for-sale equity securities?
C. How do these unrealized gains affect Major Bank's 2016 income statement?
D. How do these unrealized gains affect Major Bank's' 2016 balance sheet?

The 2016 Annual Report of Major Bank Corp Includes the Following