On January 1, 2008 SSS buys 500 shares of Co common stock for $50/share for the stock portfolio as short-term investment. SSSs purchase represents 1% of outstanding Co stock and the company exerts no influence on Co. Journalize the purchase by SSS.

On February 1 Co pays a $1/share dividend. Journalize SSSs receipt of the dividend.

On Feb 15, Co reports $1mm net income. What JE does the company make, if any, to recognize the income?

On March 1 SSS decides to sell 250 shares of its Co stock for $45/share. Journalize SSSs sale of Co stock.

Fast forward to December 31, 2008: The price of Co shares is $49/share. What fair market adjustment does SSS make, if any?

How will this stock investment be presented on the balance sheet?

Jan 1, SSS buys 60,000 shares of Inc at $20/share as a long-term investment in the stock portfolio. The purchase represents 25% of all outstanding Inc stock and SSS has representation on Incs board of directors. Journalize the purchase.

On June 31, 2008 Inc reports net income of $20,000 for its fiscal year ended June 31. Make the journal entry for SSS.

On October 1, Inc pays a $1/share cash dividend. Journalize SSSs receipt of this dividend.

On Dec 31, Inc shares are trading $18/share. What fair value adjustment, if any, needs to be made?

How will this stock be represented on the SSS balance sheet?