Question
Income Statement (selected items) For the Year Ended December 31, Year 2 Income from operations $148,000 Gain on sale of investments 10,000 Unrealized loss on
Income Statement (selected items) For the Year Ended December 31, Year 2 Income from operations $148,000 Gain on sale of investments 10,000 Unrealized loss on trading investments (34,000) Net income $124,000 The balance sheet dated December 31, Year 1, showed a Retained Earnings balance of $604,000. During Year 2, the company purchased trading investments for the first time at a cost of $164,000. In addition, trading investments with a cost of $45,000 were sold at a gain during Year 2. The company paid $35,000 in dividends during Year 2. a. Determine the December 31, Year 2, Retained Earnings balance. $ b. Provide the December 31, Year 2, balance sheet disclosure for Trading Investments. Delta-tec, Inc. Balance Sheet Disclosure for Trading Investments For December 31, Year 2 $ $
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