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Amalgamated General Corporation is a consulting firm that also offers financial services through its credit division. From time to time the company buys and sells

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Amalgamated General Corporation is a consulting firm that also offers financial services through its credit division. From time to time the company buys and sells securities intending to earn profits on short-ternm differences in price. The following selected transactions relate to Amalgamated's investment activities during the last quarter of 2016 and the first month of 2017. The only securities held by Amalgamated at October 1 were $55 million of 10% bonds of Kansas Abstractors, Inc., purchased on May 1 at face value. The company's fiscal year ends on December 31 2016 Oct. 18 Purchased 2 million preferred shares of Millwork Ventures Company for $62 million as a speculative investment to be sold under suitable circumstances 31 Received semiannual interest of $2.2 million from the Kansas Abstractors bonds. Nov. 1 Purchased 10% bonds of Holistic Entertainment Enterpnses at their $36 million face value, to be held until they mature in 2018. Semiannual interest is payable April 30 and October 31 cause their fair value to continue to fall. until they mature in 2028. Semiannual interest is payable May 31 and November 30 short-term differences in prices hoping to earm profits on short-term differences in prices. 1 Sold the Kansas Abstractors bonds for $48 milion because rising interest rates are expected to Dec. 1 Purchased 12% bonds of Household Plastics Corporation at their $80 million face value, to be held 20 Purchased U. S. Treasury bonds for $6.1 million as trading securities, hoping to earn profits on 21 Purchased 4 million common shares of NXS Corporation for $54 million as trading securities 29 Received cash divdends of $3 milk Ventures Company preferred shares 31 Recorded any necessary adjusting entry(s) and closing entries relating to the investments. The market price of the Millwork Ventures Company preferred stock was $29.00 per share and $15.50 per share for the NXS Corporation common. The fair values of the bond investments were $61.2 milion for Household Plastics Corporation and $17.2 million for Holistic Entertainment Enterprises. 2017 Jan. 7 Sold the NXS Corporation common shares for $49 million

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