Reporting and Interpreting Stock Investment Performance Kasznik Company began operations on June 15 of the current calendar year and, by year-end (December 31), had made six stock investments. Year-end information on these stock investments follows.

December 31	Cost or Equity Basis (as appropriate)	Year-End Fair Value	Market Classification
Barth, Inc.	$ 68,000	$ 64,900	Trading
Foster, Inc.	162,500	160,000	Trading
McNichols, Inc.	197,000	190,000	Available-for-sale
Patell, Inc.	157,000	154,500	Available-for-sale
Ertimur, Inc.	100,100	102,400	Equity method
Soliman, Inc.	136,100	133,200	Equity method

Hint: Use negative signs with any answers that are losses.

(a) What does Kasznik's balance sheet report for trading stock investments at December 31? $Answer

(b) What does Kasznik's balance sheet report for available-for-sale investments at December 31? $Answer (c) What does Kasznik's balance sheet report for equity method investments at December 31? $Answer (d) What total amount of unrealized holding gains or unrealized holding losses related to investments appear in Kasnik's income statement? $Answer (e) What total amount of unrealized holding gains or unrealized holding losses related to investments appear in the stockholders' equity section of Kasznik's December 31, balance sheet? $Answer included in accumulated other comprehensive income $Answer included in retained earnings (f) What total amount of fair-value adjustment to investments appears in the December 31, balance sheet? $Answer Which category of investments does the fair-value adjustment relate to?

The fair value adjustment relates to available-for-sale investments only.

Investments are carried at historical cost. There is no fair value adjustment.

The fair value adjustment relates to both trading and available-for-sale investments.

The fair value adjustment relates to trading investments only and is recognized in current income.