Question
Loreal-American Corporation purchased several marketable securities during 2016. At December 31, 2016, the company had the investments in common stock listed below. None was held
| Loreal-American Corporation purchased several marketable securities during 2016. At December 31, 2016, the company had the investments in common stock listed below. None was held at the last reporting date, December 31, 2015, and all are considered securities available-for-sale. |
| Cost | Fair Value | Unrealized Holding Gain (Loss) | ||||||||||
| Short term: | ||||||||||||
| Blair, Inc. | $ | 520,000 | $ | 385,000 | $ | (135,000 | ) | |||||
| ANC Corporation | 470,000 | 520,000 | 50,000 | |||||||||
| Totals | $ | 990,000 | $ | 905,000 | $ | (85,000 | ) | |||||
| Long term: | ||||||||||||
| Drake Corporation | $ | 520,000 | $ | 580,000 | $ | 60,000 | ||||||
| Aaron Industries | 700,000 | 680,000 | (20,000 | ) | ||||||||
| Totals | $ | 1,220,000 | $ | 1,260,000 | $ | 40,000 | ||||||
| ||||||||||||
| b) | What amounts would be reported in the income statement at December 31, 2016, as a result of the adjusting entry? Amount ______ |
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Auditing Your Human Resources Department A Step By Step Guide
Authors: John H. McConnell
1st Edition
0814474675, 978-0814474679
