Question
On July 12, 2014, Rossow Corporation purchased 2,500 shares of Reimer Company for $45,000. The following information applies to the fair value of Reimer Company:
On July 12, 2014, Rossow Corporation purchased 2,500 shares of Reimer Company for $45,000. The following information applies to the fair value of Reimer Company: |
Per Share | |||
12/31/2014 | $ | 24 | |
12/31/2015 | 20 | ||
12/31/2016 | 15 | ||
Reimer Company declares and pays cash dividends of $4 per share on May 1 of each year. |
1.
Record the purchase of 2,500 shares of Reimer Company for $45,000. The company reports the purchase as available-for-sale securities.
2.
Record the valuation adjustment if the fair value of Reimer Company's stock on December 31, 2014 is $24 per share.
3.
Record the receipt of cash dividends on May 1, 2015 of $4 per share.
4.
Record the valuation adjustment if the fair value of Reimer Company's stock on December 31, 2015 is $20 per share.
5.
Record the receipt of cash dividends on May 1, 2016 of $4 per share.
6.
Record the valuation adjustment if the fair value of Reimer Company's stock on December 31, 2016 is $15 per share.
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