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3A1//Financial Accounting
QUESTIONS
1. On January 1, 2017, DeokSeon Company began its operations. The following
information pertains to the December 31, 2017 portfolio of equity securities:
TRADING NON-TRADING
Aggregate cost 5,000,000 2,800,000
Aggregate market value 8,900,000 6,000,000
Aggregate lower of cost 4,500,000 5,300,000
or market value applied
to each security
The market declines are judged to be other than temporary. The non-
trading securities are designated at fair value through profit or loss. What
amount should be reported as total gain or loss on these securities in the
income statement for 2017?