. The contribution of FCB’s equity portfolio to its net income for 2012 is closest to: A. $25,000. B. $33,000. C. $41,000 The answer is B
Security Mercury. Venus Jupiter Saturn
Classification HFT Desig @ FV. AFS Equity Meth
Divs received during year. 2000 5000 3000 4000
Share of NI for the year. 8000 4000 9000 20000
We have a 35% stake in Saturn but don’t have control
125mph
#2
The question is incomplete. You didn’t specify the starting and ending values of the HFT and Desg @ FV.
Yeah, unrealized gain/loss in HFT is recognized on income at year
I see. You pointing that out made me look at it a different way and I now understand it. Thank you!