Question
On February 15, Jewel Company buys 6,000 shares of Marcelo Corp. common stock at $28.73 per share plus a brokerage fee of $495. The stock
On February 15, Jewel Company buys 6,000 shares of Marcelo Corp. common stock at $28.73 per share plus a brokerage fee of $495. The stock is classified as available-for-sale securities. On March 15, Marcelo Corp. declares a dividend of $1.25 per share payable to stockholders of record on April 15. Jewel Company received the dividend on April 15 and ultimately sells half of the Marcelo Corp. stock on November 17 of the current year for $29.50 per share less a brokerage fee of $350. The fair value of the remaining shares is $29.70 per share. The amount that Jewel Company should report on its year-end December 31 income statement related to the investment in Marcelo Corp. is (Round your intermediate and final dollar values to the nearest dollar amount): |
$1,712.
$2,662.
$5,610.
$9,212.
$7,500.
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