What effect on 2009 income should be reported by goofy for, Ask an Expert

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Goofy Inc. bought 15,000 shares of crazy co.'s stock for $150,000 on May 5, 2008, and classified the stock as available for sale. The market value of the stock declined to $118,000 by December 31,2008. Goofy reclassified this investment as trading securities in December of 2009 when the market value had risen to $125,000. What effect on 2009 income should be reported by Goofy for the Crazy Co. Shares?

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M992083

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