17-20 presented below is information related to the purchase of common stock

Assignment Gradebook ORION Downloadable eTextbook ent Exercise 1z-zu LATOR FULL SCREEN PRINTER VERSTON BACK Presented below is information related to the purchases of common stock by Lily Company during 2017 Cost (at purchase date) Fair Value (at December 31) Investment in Arroyo Company stock Investment in Lee Corporation stock Investment in Woods Inc. stock $100,000 250,000 180,000 $530,000 $80,000 300,000 190,000 $570,000 Total In addition, assume that the investment in the Woods Inc. stock was sold during 2018 for $195,000. At Decembol 31, 2018, the following information relates to its tw remaining investments of common stock. Fair Value Cost Cat purchase date) $100,000 250,000 $350,000 (at December 31) $140,000 310,000 $450,000 Investment in Arroyo Company stock Investment in Lee Corporation stock Total Net income before any security gains and losses for 2018 was $905,000. taking into consideration Lilly's security transactions for 2018, assuming Lilly did not (a) Compute the amount of net income or net loss that Lilly should report for 2018, select the fair value option for investments in the Lee and Woods corporations Net income or net loss that Lilly should report for 2018 (b) Prepare the journal entry to record unrealized gain or loss related to the investment in Arroyo Company stock at December 31, 2018. (Credit account titles are Version 4 automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for 2000-2018 ahnwieyhSons,tnc. All Rights Reserved. A Division of JohnwieAsens.inc. Policy