Question
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
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 | 191,000 | Available-for-sale |
| Patell, Inc. | 157,000 | 154,200 | Available-for-sale |
| Ertimur, Inc. | 100,800 | 102,400 | Equity method |
| Soliman, Inc. | 136,400 | 133,200 | Equity method
|
(d) What total amount of unrealized holding gains or unrealized holding losses related to investments appear in Kasznik's income statement?
(f) What total amount of fair-value adjustment to investments appears in the December 31, balance sheet?
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Financial And Managerial Accounting
Authors: Charles T. Horngren, Walter T. Harrison Jr., M. Suzanne Oliver
1st Edition
0558241050, 978-0558241056
