Question
Lockwood Corporations trading portfolio at the end of the year is as follows: Security Cost Fair Value Common Stock C $10,000 $12,000 Common Stock D
Lockwood Corporations trading portfolio at the end of the year is as follows:
Security Cost Fair Value
Common Stock C $10,000 $12,000
Common Stock D 8,000 5,000
$18,000 $17,000
Lockwood subsequently sells Stock C for $12,000. What entry is made to record the sale?
a. Cash....................................................................................... 12,000
Stock Investments........................................................ 12,000
b. Cash....................................................................................... 12,000
Fair Value Adjustment Trading..................................... 2,000
Stock Investments........................................................ 10,000
c. Cash....................................................................................... 12,000
Stock Investments........................................................ 10,000
Gain on Sale of Stock Investments.............................. 2,000
d. Cash....................................................................................... 12,000
Stock Investments........................................................ 6,000
Gain on Sale of Stock Investments.............................. 6,000
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Auditing And Assurance Services
Authors: David Ricchiute
5th Edition
0538869526, 978-0538869522
