(Learning Objectives 1, 2: Reporting investments on the balance sheet and the related revenue on the income statement) Oregon Exchange Company completed the following long-term investment transactions during 20X6:

All of the A and B problems can be found within MyAccountingLab, an online homework and practice environment. Your instructor may ask you to complete these problems using MyAccountingLab.

At year-end the fair market value of Columbus shares is $30,000. The fair market value of the Woburn shares is $658,000.

❙ Requirements 1. For which investment is fair market value used in the accounting? Why is fair market value used for one investment and not the other?

2. Show what Oregon would report on its year-end balance sheet and income statement for these investment transactions. It is helpful to use a T-account for the Long-Term Investment in Woburn account. Ignore income tax.