Western Co. bought 3,200 shares of New Brunswick common stock at $34; 600 shares of Paris stock

Question:

Western Co. bought 3,200 shares of New Brunswick at $34; 600 shares of Paris stock at $46.25; and 1,000 shares of Ireland stock at $73—all as available-for-sale investments. At December 31, Hoover’s Online reports New Brunswick stock at $28.125, Paris at $48.00, and Ireland at $68.00.

Requirements
1. Determine the cost and the fair value of the long-term investment at December 31.
2. Record Western’s adjusting entry at December 31.
3. What would Western report on its statement of other comprehensive income and for the information given? Make the necessary disclosures. Ignore income tax.

Common Stock
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