Unrealized loss on investments

Reference no: EM1362548

Furriers purchased one thousand shares of Loose Corporation stock on January 10, 2005, for $800 per share and classified the investment as securities Available for Sale. Loose's market value was $400 per share on December 31, 2005. As of December 31, 2006, Dicker still owned the Loose's stock whose market value has declined to $100 per share. The decline is due to a reason that's judged to be other than temporary. In Furriers December 31, 2006, balance sheet and the 2006 income statement, what amounts would you report for the following?

a. Unrealized loss on investments to be reported under Stockholders' Equity
b. Loss on investments to be reported on the income statement
c. Reported total value of Loose's stock on Dicker's balance sheet

Reference no: EM1362548

Questions Cloud

Morbidity and mortality : Diabetes, some preventable cancers, obesity. These are ranked among the most common causes of morbidity and mortality and are highly preventable.

Lender controls used in inventory financing : Determine which of the following is not part of the lender controls used in inventory financing and find the cost of not taking the following cash discounts?

Food intolerance and food allergy : If the body adjusts o digest each food that we eat, why can it react so differently to different foods? What is the difference between food intolerance and food allergy?

Determine market price : The probability distribution for kM for the coming year is as follows: If kRF = 6.05 percent and Stock X has a beta of 2.0, an expected constant growth rate of 7%,

Unrealized loss on investments : Furriers purchased 1000 shares of Loose Corporation stock on January 10, 2005, for $800 per share and classified the investment as securities Available for Sale.

Determine expected price of the stock : Graham Enterprises anticipates that its dividend at the end of the year will be $2 a share. The dividend is expected to grow at a constant rate of 7% a year.

Explain tacit and explicit knowledge : Give three examples of tacit knowledge; provide three examples of explicit knowledge. Discuss how you might use this knowledge.

Estimate the current stock price : A stock is not expected to pay a dividend over the next four years. Five years from now the company anticipates that it will establish a dividend of $1 a share.

Show conversation platforms and a people channel : What are the advantages of narrowing strategic messages into a Conversation Platform and why is the People Channel critical to effective leadership communication?

User Account

All Pages