Prac Exam V.1 3am P180 Q.59

CFA Level II
#1

In Schweser Prac Ex V.1 p 180 Question 59, we are asked to calculate B/S and I/S value of Available-For-Sales securities. The answer gives a B/S value of 600’000 which is the fair market value in 2006. But Don’t we have to add Unrealised Gain/Loss (850’000) to comprehensive income in equity for Available-For-Sales securities?? I thought the answer is only adjustment for Trading securities. Thanks in advance!!!

#2

help plz

#3

help plz

#4

Don’t know this question yet but I can imagine that if they ask for the balance sheet value of the marketable security, they just want to see the market value as the answer. Yes there is a comprehensive income part as part of equity but that may not be what they ask you. The BS value of the shares is the market value. Don’t overthink these things.

#5

Can you post the question (or give additional information)?

#6

Thanks mcpass, I think you are right. I was confused with the question’s wording. Really appreciated it!

#7

remember for that exact question, there is an error in Schweser. Text missing!!! check the errata!!

#8

There is text missing however, I’m not sure where they are getting the dividends from. Does anybody see where it is coming from? Thanks for all the help

#9

any help on this?

#10

doesn’t comprehensive income goto equity?

#11

Bacaladitos Wrote: ------------------------------------------------------- > remember for that exact question, there is an > error in Schweser. Text missing!!! > > check the errata!! Bacaladitos You are right, the errata states that they paid a $1/share in dividends. I was thinking of a different errata, thanks for the help