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Presented below is information related to the purchases of common stock by Kingbird Company during 2020. Cost (at purchase date) $97.000 Fair Value (at December
Presented below is information related to the purchases of common stock by Kingbird Company during 2020. Cost (at purchase date) $97.000 Fair Value (at December 31) $76,000 Investment in Arroyo Company stock Investment in Lee Corporation stock 266,000 311,000 Investment in Woods Inc. stock 176,000 185,000 Total $539.000 $572,000 (Assume a zero balance for any Fair Value Adjustment account.) (a) What entry would Kingbird make at December 31, 2020, to record the investment in Arroyo Company stock if it chooses to report this security using the fair value option? What entry would Kingbird make at December 31, 2020, to record the investments in the Lee and Woods corporations, assuming that Kingbird did not select the fair value option for these investments? (b) (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts.) No. Account Titles and Explanation Debit Credit a (a) (b)
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