(Learning Objective 1: Accounting for available-for-sale investments) Osborn Co.

bought 3,400 Stockholm shares at $35; 660 London shares at $46.50; and 1,200 Glasgow shares at $74—all as available-for-sale investments. At December 31, Hoover’s Online reports Stockholm shares at $28.375, London at $48.25, and Glasgow at $68.75.

❙ Requirements 1. Determine the cost and the fair market value of the long-term investment portfolio at December 31.

2. Record Osborn’s adjusting entry at December 31.

3. What would Osborn report on its income statement and balance sheet for the information given? Make the necessary disclosures. Ignore income tax.