California Co. bought 3,500 shares of New Brunswick common stock at $34; 740 shares of Paris stock

Question:

California Co. bought 3,500 shares of New Brunswick at $34; 740 shares of Paris stock at $46.25; and 1,380 shares of Ireland stock at $73—all as available-for-sale investments. At December 31, Hoover’s Online reports New Brunswick stock at $28.125, Paris at $48.00, and Ireland at $68.00.

Requirements
1. Determine the cost and the fair value of the long-term investment at December 31.
2. Record California Co.’s adjusting entry at December 31.
3. What would California Co. report on its statement of other comprehensive income and for the information given? Make the necessary disclosures. Ignore income tax.

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