(Available-for-Sale Securities—Statement Presentation) Alvarez Corp. invested its excess cash in available-for-sale securities during 2006. As of December 31, 2006, the portfolio of available-for-sale securities consisted of the following common stocks.

During the year 2007, Alvarez Corp. sold 2,000 shares of Eola Corp. for $38,200 and purchased 2,000 more shares of Keesha Jones, Inc. and 1,000 shares of King Company.

(b) What should be reported on Alvarez’s December 31, 2007, balance sheet? What should be reported on Alvarez’s 2007 income statement?
On December 31, 2008, Alvarez’s portfolio of available-for-sale securities consisted of the following common stocks.

During the year 2008, Alvarez Corp. sold 3,000 shares of Keesha Jones, Inc. for $39,900 and 500 shares of King Company at a loss of $2,700.

(c) What should be reported on the face of Alvarez’s December 31, 2008, balance sheet? What should be reported on Alvarez’s 2008 income statement?

(d) What would be reported in a statement of comprehensive income at (1) December 31, 2006, and (2) December 31, 2007?

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Security Quantity Cost Fair Value Keesha Jones, Inc. 1,000 shares Eola Corp. 2,000 shares Yevette Aircraft 2,000 shares $ 15,000 50,000 72,000 $ 21,000 42,000 60,000 Totals $137,000 $123,000 Instructions (a) What should be reported on Alvarez's December 31, 2006, balance sheet relative to these securi- ties? What should be reported on Alvarez's 2006 income statement? On December 31, 2007, Alvarez's portfolio of available-for-sale securities consisted of the fol- lowing common stocks. Security Keesha Jones, Inc. Keesha Jones, Inc. Quantity 1,000 shares Cost Fair Value $ 15,000 $20,000 2,000 shares 38,000 40,000 King Company 1,000 shares 16,000 12,000 Yevette Aircraft 2,000 shares 72,000 22,000 Totals $141,000 $94,000