Question
Equity Investment: Trading Securities and Available for Sale. Reggie Corporation purchased some stock in the ABC Company on July 1, 2012. The cost basis and
Equity Investment: Trading Securities and Available for Sale. Reggie Corporation purchased some stock in the ABC Company on July 1, 2012. The cost basis and the market value of the investment are as follows: July 1, 2012 Dec. 31, 2012 Dec.31, 2013 Historical Cost Market Value Market Value ABC Company $113,000 $119,000 $117,000 This security has been and continues to be actively traded on a national exchange. Reggie accounts for it using the fair value method, as per GAAP. The investment in ABC was classified as a trading security. On January 2, 2014, the investment in ABC Company was sold for $117,000. Required: What values are reported on Reggie
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