Solution-How the investment would be reported at each year

How the investment would be reported at each year end

Reference no: EM13865450

Refer to the data in ED- 5.

Per Share

12/ 31/ 2015… $ 45

12/ 31/ 2016... 42

Required:

1. Assume that management intends to hold the stock as available- for- sale securities for three years or more. Show how the stock investment and its net unrealized losses/gains would be reported at each year- end on the classified balance sheet and income statement.

2. Assume that management purchased the stock as trading securities. Show how the investment and net unrealized losses/gains would be reported at each year- end on the classified balance sheet and income statement.

Reference no: EM13865450

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How the investment would be reported at each year end

Reference no: EM13865450

Reference no: EM13865450

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