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Presented below is information related to the purchases of common stock by Blue Company during 2017. Cost (at purchase date) Fair Value (at December 31)
Presented below is information related to the purchases of common stock by Blue Company during 2017. Cost (at purchase date) Fair Value (at December 31) Investment in Arroyo Company stock Investment in Lee Corporation stock Investment in Woods Inc. stock Total $94,000 269,000 183,000 $546,000 $76,000 322,000 192,000 $590,000 (Assume a zero balance for any Fair Value Adjustment account.) (a) (b) What entry would Blue 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? What entry would Blue make at December 31, 2017, to record the investments in the Lee and Woods corporations, assuming that Blue did not select the fair value option for these investments? (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 o for the amounts.) Debit Credit No. Account Titles and Explanation (a)
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