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Rose Company had no short-term investments prior to this year. It had the following transactions this year involving short- term stock investments with insignificant influence.
Rose Company had no short-term investments prior to this year. It had the following transactions this year involving short- term stock investments with insignificant influence. Apr. 16 Purchased 10,000 shares of Gem Co. stock at $25.75 per share. July 7 Purchased 5,000 shares of PepsiCo stock at $46.00 per share. 20 Purchased 2,500 shares of Xerox stock at $16.00 per share. Aug. 15 Received a(n) $0.85 per share cash dividend on the Gem Co. stock. 28 Sold 5,000 shares of Gem Co. stock at $32.50 per share. Oct. 1 Received a $1.60 per share cash dividend on the PepsiCo shares. Dec. 15 Received a $1.00 per share cash dividend on the remaining Gem Co. shares. 31 Received a $1.00 per share cash dividend on the PepsiCo shares. 2. Prepare a table to compare the year-end cost and fair values of Rose's short-term stock investments. The year-end fair values per share are Gem Co., $28.00; PepsiCo, $43.25; and Xerox, $13.00. Comparison of Cost and Fair Values for Stock Investments Portfolio at Year-End Fair Unrealized Cost Gain or Loss? Value Amount Gem Co. $ 128,750 $ 140,000 Pepsi Co. 235,000 X 216,250 Xerox 40,000 32,500 Total $ 403,750 $ 388,750 $ 15,000 X Unrealized loss *Red text indicates no response was expected in a cell or a formula-based calculation is incorrect; no points deducted
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