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 | $ 65,300 | Trading |
Foster, Inc. | 162,500 | 160,000 | Trading |
McNichols, Inc. | 197,000 | 192,000 | Available-for-sale |
Patell, Inc. | 157,000 | 154,700 | Available-for-sale |
Ertimur, Inc. | 100,000 | 102,400 | Equity method |
Soliman, Inc. | 136,000 | 133,200 | Equity method |
HINT: Use negative signs in 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 Kasznik'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 Kasnik's December 31, balance sheet? $Answer included in accumulated other comprehensive income $Answer included in retained earnings
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