Solution-What amount should wayne record as a loss

What amount should wayne record as a loss

Reference no: EM132019906

Problem - On January 10, year 1, Wayne, Inc., purchased 5,000 shares of Jason Corporation's common stock at $60 per share. The purchase is a long-term investment and is less than 20% of Jason's outstanding shares. This investment is appropriately reflected in Wayne's balance sheet in an available-for-sale securities portfolio at December 31, year 1. The market value of Wayne's investment in Jason's common stock was as follows:

	Market Value
Date	Per share	Total
December 15, year 1	$47	$235,000
December 31, year 1	$46	$230,000

On December 15, year 1, Wayne determined that there had been a temporary decline in the market value. What amount should Wayne record as a loss in its income statement for the year ended December 31, year 1?

$70,000

$5,000

$65,000

Reference no: EM132019906

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What amount should wayne record as a loss

Reference no: EM132019906

Reference no: EM132019906

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