Question
Kasznik Company began operations on June 15 of the current calendar year and, by year-end (December 31), had made six stock investments. Year-end information on
Kasznik Company began operations on June 15 of the current calendar year and, by year-end (December 31), had made six stock investments. Year-end information on these stock investments follows.
| December 31 | Cost or Equity Basis (as appropriate) | Year-End Fair Value | Market Classification |
|---|---|---|---|
| Barth, Inc. | $ 68,000 | $ 64,900 | Trading |
| Foster, Inc. | 162,500 | 160,000 | Trading |
| McNichols, Inc. | 197,000 | 191,000 | Available-for-sale |
| Patell, Inc. | 157,000 | 154,200 | Available-for-sale |
| Ertimur, Inc. | 100,600 | 102,400 | Equity method |
| Soliman, Inc. | 135,500 | 133,200 | Equity method |
a. What total amount of unrealized holding gains or unrealized holding losses related to investments appear in Kasznik's income statement ? b. What total amount of unrealized holding gains or unrealized holding losses related to investments appear in the stockholders' equity section of Kasznik's December 31, balance sheet? c. What total amount of fair-value adjustment to investments appears in the December 31, balance sheet?
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Management Accounting And Strategic Human Resource Management
Authors: John Innes, Reza Kouhy
1st Edition
1859714862, 978-1859714867
