Question

At the beginning of 2018, Ace Company had the following portfolio of investments in available-for-sale debt securities (all of which were acquired at par value):

Security

Cost

1/1/18 Fair Value

During 2018, the following transactions occurred:

Security

12/31/18 Fair Value

Required:

Next Level What justification does the FASB give for its treatment of unrealized holding gains and losses for available-for-sale securities?

ADDITIONAL INFORMATION: The General Journal should consist of 12 lines of accounts.If there are not 12 lines of accounts it will be incorrect. The only question needed is question 1. I can determine 2 and the Next Level questions myself. Thanks