CHAPTER12 (12.)

The following selected transactions relate to investment activities of Ornamental Insulation Corporation during 2018. The company buys equity securities as investments. None of Ornamentals investments are large enough to exert significant influence on the investee. Ornamentals fiscal year ends on December 31. No investments were held by Ornamental on December 31, 2017.

Mar.		31		Acquired Distribution Transformers Corporation common stock for $510,000.
Sep.		1		Acquired $1,065,000 of American Instruments' common stock.
Sep.		30		Received a $20,400 dividend on the Distribution Transformers common stock.
Oct.		2		Sold the Distribution Transformers common stock for $546,000.
Nov.		1		Purchased $1,510,000 of M&D Corporation common stock.
Dec.		31		Recorded any necessary adjusting entry(s) relating to the investments. The market prices of the investments are:

American Instruments common stock	$	1,004,000
M&D Corporation common stock	$	1,581,000

Required:

2. Indicate any amounts that Ornamental Insulation would report in its 2018 income statement, 2018 statement of comprehensive income, and 12/31/2018 balance sheet as a result of these investments.

*THE AMOUNTS I GOT WRONG

Required 1 Required 2 Indicate any amounts that Ornamental Insulation would report in its 2018 income statement, 2018 statement of comprehensive income, and 12/31/2018 balance sheet as a result of these investments. Income statement: Investment revenue $ 20,400 36,000 Gain on sale of investments Net income 56,400 Statement of comprehensive income: Net income 56,400 Other comprehensive income 0 56,400 Balance sheet Assets Current Assets $ 2,575,000 $ 2,585,000 Add: Fair value adjustment 10,000 Shareholders' Equity Unrealized holding gain on investments held 10,000