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!!!

help plz

help plz

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.

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

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

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

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

any help on this?

doesn’t comprehensive income goto equity?

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