Reference no: EM13895112
Troyer's long term available for sale portfolio at December 31, 2012, consists of the following.
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Troyer enters into the following long term investment transactions during year 2013.
Jan. 13 Sold 2,125 shares of Company S stock for $72,250 less a brokerage fee of $1,195.
Mar. 24 Purchased 15,500 shares of Company U common stock for $ 282,875 plus a brokerage fee of $ 1,980. The shares represent a 62% ownership interest in Company U.
Apr. 5 Purchased 42,500 shares of Company V common stock for $ 133,875 plus a brokerage fee of $ 1,125. The shares represent a 10% ownership in Company V.
Sept. 2 Sold 11,000 shares of Company T common stock for $ 156,750 less a brokerage fee of $2,700. Sept. 27 Purchased 2,500 shares of Company W common stock for $ 50,500 plus a brokerage fee of $ 1,050. The shares represent a 25% ownership interest in Company W.
Oct. 30 Purchased 5,000 shares of Company X common stock for $ 48,750 plus a brokerage fee of $ 1,170. The shares represent a 13% ownership interest in Company X.
The fair values of its investments at December 31, 2013, are: R, $ 568,125; S, $ 210,375; U, $ 272,800; V, $ 134,938; W, $ 54,689; and X, $ 45,625.
Required:
1. Determine the amount Troyer should report on its December 31, 2013, balance sheet for its long term investments in available for sale securities.
2. Prepare any necessary December 31, 2013, adjusting entry to record the fair value adjustment of the long term investments in available for sale securities. 3. What amount of gains or losses on transactions relating to long term investments in available for sale securities should Troyer report on its December 31, 2013, incomestatement?