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Problem 5 At December 31, 2020, the trading securities for Taylor, Inc. are as follows: Security Cost Fair Value A $17,500 $16,000 B 12,500 14,000

Problem 5

At December 31, 2020, the trading securities for Taylor, Inc. are as follows:

Security Cost Fair Value

A $17,500 $16,000

B 12,500 14,000

C 23,000 19,000

$53,000 $49,000

Instructions

  1. Prepare the journal entry at December 31, 2020, to report the securities at fair value.
  2. Assume that the investments are classified as available-for-sale securities. They have the same cost and fair value. Prepare the journal entry at December 31, 2020, to report the securities at fair value.

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