Cost Fair Value (at December 31) $74,000 283,000 198,000 $555,000 (at purchase d

Question

Cost Fair Value (at December 31) $74,000 283,000 198,000 $555,000 (at purchase date) Investment in Arroyo Company stock Investment in Lee Corporation stock Investment in Woods Inc. stock $93,000 238,000 188,000 $519,000 Total (Assume a zero balance for any Fair Value Adjustment account.) (a) What entry would Concord make at December 31, 2017, to record the investment in Arroyo Company stock if it chooses to report this security (b) What entry would Concord make at December 31, 2017, to record the investments in the Lee and Woods corporations, assuming that Concord did using the fair value option? not select the fair value option for these investments? (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) No. Account Titles and Explanation (a) Loss on Sale of Investments Debit Credit Debt Investments (b) Fair Value Adjustment Unrealized Holding Gain or Loss - Income

Explanation / Answer

a) Equity investment 19000 (93000-74000)             Unrealised holding gain or loss -income 19000 b) Unrealised holding gain or loss -income 55000             Fair value adjustment 55000

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