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During 2016, its first year of operations, Galileo Company purchased two available-for-sale investments as follows: Security Shares Purchased Cost Hawking Inc. 900 $44,000 Pavlov Co.
During 2016, its first year of operations, Galileo Company purchased two available-for-sale investments as follows:
Security | Shares Purchased | Cost |
---|---|---|
Hawking Inc. | 900 | $44,000 |
Pavlov Co. | 1,780 | 38,000 |
Assume that as of December 31, 2016, the Hawking Inc. stock had a market value of $50 per share, and the Pavlov Co. stock had a market value of $24 per share. Galileo Company had net income of $300,000, and paid no dividends for the year ended December 31, 2016. All of the available-for-sale investments are classified as current assets.
Required: | |||
A. | Prepare the Current Assets section of the balance sheet presentation for the available-for-sale investments. Plus or Less will automatically appear if it is required.* | ||
B. | Prepare the Stockholders Equity section of the balance sheet to reflect the earnings and unrealized gain (loss) for the available-for-sale investments.*
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