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Jackson Co. buys and sells securities expecting to earn profits on short-term differences in price. The company's fiscal year ends on December 31. The following
Jackson Co. buys and sells securities expecting to earn profits on short-term differences in price. The company's fiscal year ends on December 31. The following information are transactions specific to the trading account for the Jackson Company for the last 6 weeks of the current year: November 20th Purchased 10,000 shares, 2%, of Vedder Co. common stock for $200 a share. December 12th Received $1,000 of cash dividends from the investment in Vedder Co. stock. December 31st At year-end, the market price of Vedder Co. common stock is $180 a share. December 31st At year-end, the Vedder Co. reported profits of $2,000,000. On December 31st, from the perspective of the Jackson Co., how will the fair value adjustment impact the Jackson Co.? Question 11 options: a) Both assets and equity will decrease. b) The unrealized gain will be included in other comprehensive income. c) No change in total assets. d) Both assets and equity will increase
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