Working backward from data on marketable securities transaction. (Adapted from a problem by S. A. Zeff.) During Year 3, Fischer/Black Co. purchased equity securities classified as securities available for sale. On May 22, Year 4, the company recorded the following correct journal entry to record the sale of the equity securities:

a. What was the acquisition cost of these securities in Year 3?

b. What was the market value of these securities at the end of Year 3?

c. What is the total amount of securities gain or loss that Fischer/Black reports on the income statement for Year 4?

Transcribed Image Text:

Cash Realized Loss... Unrealized Holding Loss Marketable Securities 15,000 5,000 3,000 17,000