Teal Corporation made the following cash purchases of securities during 2025, which is the first year in
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Question:
1. On January 15, purchased 12,800 shares of Sanchez Company's common stock at $33.50 per share plus commission $2,544.
2. On April 1, purchased 6,400 shares of Vicario Co's common stock at $52.00 per share plus commission $4,304.
3. On September 10, purchased 8,960 shares of WTA Co's preferred stock at $26.50 per share plus commission $6,280.
On May 20, 2025, Teal sold 5,120 shares of Sanchez Company's common stock at a market price of $35 per share less brokerage commissions, taxes, and fees of $4,928. The year-end fair values per share were Sanchez $30, Vicario $55, and WTA $28. In addition, the chief accountant of Teal told you that the corporation plans to hold these securities for the long-term but may sell them in order to earn profits from appreciation in prices. The equity method of accounting is not appropriate for these stock purchases.
Compute the unrealized gains or losses. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses eg. (45). Round answers to O decimal places, eg. 1.225)
Related Book For
Intermediate Accounting
ISBN: 9781119790976
18th Edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
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