Question
Accounting for Available-for-Sale and Trading Securities Assume that Wasley Company purchases 8,000 common shares of Pincus Company for $12 cash per share. During the year,
Accounting for Available-for-Sale and Trading Securities
Assume that Wasley Company purchases 8,000 common shares of Pincus Company for $12 cash per share. During the year, Wasley receives a cash dividend of $1.10 per common share from Pincus, and the year-end market price of Pincus common stock is $13 per share. How much income does Wasley report relating to this investment for the year if it accounts for the investment as: a. Available-for-sale investment?
| Dividend income | $Answer |
| Capital gain/(loss) | $Answer |
| Total | $Answer |
b. Trading investment?
| Dividend income | $Answer |
| Capital gain/(loss) | $Answer |
| Total | $Answer |
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Horngrens Financial and Managerial Accounting
Authors: Tracie L. Nobles, Brenda L. Mattison, Ella Mae Matsumura
4th Edition
978-0133251241, 9780133427516, 133251241, 013342751X, 978-0133255584
