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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. April
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.
April 16 | Purchased 6,000 shares of Gem Company stock at $20.00 per share. |
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July 7 | Purchased 3,000 shares of PepsiCo stock at $47.00 per share. |
July 20 | Purchased 1,500 shares of Xerox stock at $16.00 per share. |
August 15 | Received a $0.90 per share cash dividend on the Gem Company stock. |
August 28 | Sold 3,000 shares of Gem Company stock at $26.75 per share. |
October 1 | Received a $1.60 per share cash dividend on the PepsiCo shares. |
December 15 | Received a $1.05 per share cash dividend on the remaining Gem Company shares. |
December 31 | Received a $1.05 per share cash dividend on the PepsiCo shares. |
The year-end fair values per share are Gem Company, $22.25; PepsiCo, $44.25; and Xerox, $13.00.
Second Part
Prepare a table to compare the year-end cost and fair values of Rose's short-term stock investments.
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