Kirk Company acquired shares in the equity of both Company A and Company B. We have the following information from the public markets about Company A and Company Bs investment value at the time of purchase and at two subsequent dates:

Security Cost T = 1 T = 2

A $950 $850 $900

B 250 180 350

Kirk Company will report what initial value of its portfolio assuming that they are all marketable equity securities?

If we assume the investments are equity securities, how will the company recognize the investment at T = 1 on their balance sheet and income statement if the securities are considered available-for-sale and if they are considered trading securities?

Available for Sale

Income Statement:

Balance Sheet:

Trading Securities

Income Statement:

Balance Sheet: