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  3. at december 31 2018 the accountant for brady corp mistakenly...

Question: at december 31 2018 the accountant for brady corp mistakenly...

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At December 31, 2018 the accountant for Brady Corp. mistakenly accounted for its Trading Securities portfolio as an Available for Sale portfolio. The portfolio consists of three debt securities with a total amortized cost of $62,000 and a December 31, 2018 fair market value of $57,400. The impairment was deemed to be temporary. All three securities were purchased during 2018 and no securities were sold during the year. The effect of this error on assets, net income and comprehensive income (respectively) would be: Understate, overstate and overstate. No effect, overstate and no effect. No effect, understate and no effect. Overstate, Overstate and no effect.

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