Question
Loreal-American Corporation purchased several marketable securities in 2024. On December 31, 2024, the company had investments in bonds listed below. None was held at the
Loreal-American Corporation purchased several marketable securities in 2024. On December 31, 2024, the company had investments in bonds listed below. None was held at the last reporting date, December 31, 2023, and all are considered securities available for sale.
| Cost | Fair Value | Unrealized Holding Gain (Loss) | |
|---|---|---|---|
| Short term: | |||
| Blair, Incorporated | $ 486,000 | $ 402,000 | $ (84,000) |
| ANC Corporation | 453,000 | 486,000 | 33,000 |
| Totals | $ 939,000 | $ 888,000 | $ (51,000) |
| Long term: | |||
| Drake Corporation | $ 486,000 | $ 563,000 | $ 77,000 |
| Aaron Industries | 717,000 | 663,000 | (54,000) |
| Totals | $ 1,203,000 | $ 1,226,000 | $ 23,000 |
Required:
Prepare the appropriate adjusting entry on December 31, 2024.
What amount would be reported in the income statement on December 31, 2024, as a result of the adjusting entry?
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