Refer to the data in ED- 5. Per Share 12/ 31/ 2015 $ 45 12/ 31/ 2016...

Question:

Refer to the data in ED- 5.
Per Share
12/ 31/ 2015………… $ 45
12/ 31/ 2016…………... 42
Required:
1. Assume that management intends to hold the stock as available- for- sale securities for three years or more. Show how the stock investment and its net unrealized losses/gains would be reported at each year- end on the classified and income statement.
2. Assume that management purchased the stock as trading securities. Show how the investment and net unrealized losses/gains would be reported at each year- end on the classified and income statement.
Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...