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a. 20Y6
Jan. 4
July 2
Dec. 31
b.
Initial acquisition cost
Equity earnings for 20Y6
Cash dividends received
Investment in Filington Co. stock balance, Dec. 31, 20Y6
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a. 20Y6
Jan. 4 4,800,000
4,800,000
July 2 240,000
240,000
Dec. 31 480,000
480,000
Initial acquisition cost 4,800,000$
Equity earnings for 20Y6 480,000
Cash dividends received (240,000)
Investment in Filington Co. stock balance, Dec. 31, 20Y6 5,040,000$
Investment in Filington Co. Stock
Investment in Filington Co. Stock
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Investment in Filington Co. Stock
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a. 20Y9
Dec. 31
Dust Devil, Inc.
Gale Co.
Whirlwind Co.
Total
Increase (decrease) in fair value
b.
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a. 20Y9
Dec. 31 4,250
4,250
Dust Devil, Inc. 81,700$ 76,000$
Gale Co. 68,000 63,750
Whirlwind Co. 114,000 119,700
Total 263,700$ 259,450$
Increase (decrease) in fair value (4,250)$
b.
The unrealized loss on trading investments is reported on the income statement as “Other revenue and expense”
(or a separate item if significant). The unrealized loss is deducted in determining net income.
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Unrealized Gain (Loss) on Trading Investments
Valuation Allowance for Trading Investments