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Presented below is information related to the purchases of common stock by Blossom Company during 2017. (Assume a zero balance for any Fair Value Adjustment

Presented below is information related to the purchases of common stock by Blossom Company during 2017.

(Assume a zero balance for any Fair Value Adjustment account.)

(a) What entry would Blossom make at December 31, 2017, to record the investment in Arroyo Company stock if it chooses to report this security using the fair value option?

(b) What entry would Blossom make at December 31, 2017, to record the investments in the Lee and Woods corporations, assuming that Blossom did not select the fair value option for these investments?

Cost Fair Value Investment in Arroyo Company stock Investment in Lee Corporation stock Investment in Woods Inc. stock (at purchase date) $93,000 238,000 188,000 $519,000 (at December 31) $74,000 283,000 198,000 $555,000 Total

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Previous Question Next Question

(a)		What entry would Blossom make at December 31, 2017, to record the investment in Arroyo Company stock if it chooses to report this security using the fair value option?
(b)		What entry would Blossom make at December 31, 2017, to record the investments in the Lee and Woods corporations, assuming that Blossom did not select the fair value option for these investments?