Cost Fair Value 55.000 shares of Company A common stock 16,000 shares of Company
ID: 2551649 • Letter: C
Question
Cost Fair Value 55.000 shares of Company A common stock 16,000 shares of Company B common stock 28,000 shares of Company C common stock 1033,600 930,000 316,000 326,750 1,339,500 1293,875 Stoll enters into the following long-term investment transactions during year 2015 Sold 8,000 shares of Company B common stock for $162,375 less a brokerage fee of $2,800 Jan. 29 Apr 17 Purchased 20,000 shares of Company W common stock for $415,000 plus a brokerage fee of $2,500. The shares represent a 30% ownership in Company W July6Purchased 11,000 shares of Company X common stock for $255,125 plus a brokerage fee of $2,500. The shares repre sent a 12% ownership in Company X. Aug. 2 Purchased 100,000 shares of Company Y common stock for $530,000 plus a brokerage fee of $7,300. The shares represent a 51% ownership in Company Y Nov. 13 Purchased 15,000 shares of Company Z common stock for $531,800 plus a brokerage fee of $5,300. The shares represent a 5% ownership in Company Z. Sold 55,000 shares of Company A common stock for $1,012,000 less a brokerage fee of $4,100. Dec. 9 The fair values of its investments at December 31, 2015, are Fair Value B 164,750 $1,222,625 W $384,500 X $ 238,250 Y $1,064,500 Z $ 559,600Explanation / Answer
3.Loss on sale of AFS securities to be reported in Dec 31 2015 Income statement
Please note sale value has been reduced by brokerage.
Required Dec 31 2015 Balance in the Fair Value Adjustment Account 112375 Credit Dec 31 2015 Balance in the Fair Value Adjustment Account 159975 Credit Dec 31 2015 adjustment required to the Fair Value Adjustment Account 47600 Debit