Question
Stoll Co.s long-term available-for-sale portfolio at December 31, 2014, consists of the following. Available-for-Sale Securities Cost Fair Value 45,000 shares of Company A common stock
Stoll Co.s long-term available-for-sale portfolio at December 31, 2014, consists of the following.
Available-for-Sale Securities Cost Fair Value
45,000 shares of Company A common stock $ 1,031,600 $ 910,000
12,000 shares of Company B common stock 322,750 $312,000
26,000 shares of Company C common stock 1,332,500 1,287,875
Stoll enters into the following long-term investment transactions during year 2015.
Jan. 29 Sold 6,000 shares of Company B common stock for $160,375 less a brokerage fee of $2,600.
Apr. 17 Purchased 20,000 shares of Company W common stock for $405,000 plus a brokerage fee of $2,300. The shares represent a 30% ownership in Company W.
July 6 Purchased 9,000 shares of Company X common stock for $254,125 plus a brokerage fee of $2,300. The shares represent a 10% ownership in Company X.
Aug. 22 Purchased 100,000 shares of Company Y common stock for $510,000 plus a brokerage fee of $7,100. The shares represent a 51% ownership in Company Y.
Nov. 13 Purchased 13,000 shares of Company Z common stock for $532,800 plus a brokerage fee of $5,100. The shares represent a 5% ownership in Company Z.
Dec. 9 Sold 45,000 shares of Company A common stock for $1,022,000 less a brokerage fee of $4,100.
The fair values of its investments at December 31, 2015, are:
Fair Value
B $ 163,750
C $ 1,221,625
W $ 383,500
X $ 237,250
Y $ 1,063,500
Z $ 558,600
1 &2. Determine the amount Stoll should report on its December 31, 2015, balance sheet for its long-term investments in available-for-sale securities. and Prepare any necessary December 31, 2015, adjusting entry to record the fair value adjustment for the long-term investments in available-for-sale securities.
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