During 2010, JAT Company purchased trading securities as a short-term investment. The costs of
the securities and their market values on December 31, 2012, are listed below.<\/p>\n
Security Cost Market Value
(December 31, 2012)
A $400,000 $200,000
B 200,000 225,000
C 500,000 600,000<\/p>\n
JAT had no trading securities in the years before 2012. Before any adjustments related to these
trading securities, JAT had net income of $900,000 in 2012.<\/p>\n
1. What is net income (ignoring income taxes) after making any necessary trading security
adjustments?<\/p>\n
2. What would net income be if the market value of Security A were $350,000?<\/p>\n","protected":false},"excerpt":{"rendered":"
During 2010, JAT Company purchased trading securities as a short-term investment. The costs of the securities and their market values on December 31, 2012, are listed below. Security Cost Market Value (December 31, 2012) A $400,000 $200,000 B 200,000 225,000 Read More …<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-77323","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/77323","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/comments?post=77323"}],"version-history":[{"count":0,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/77323\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/media?parent=77323"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/categories?post=77323"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/tags?post=77323"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}