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What is the net impact on the income statement for the year

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Reference no: EM132506827

On November 1, 2020, Aggie Supplies, Inc. purchased 2,000 shares of Reveille Couture, Inc. for $30,000. Reveille Couture shares are actively traded. The per share stock prices were:

Share Price

November 1, 2020          $15.00

December 15, 2020          14.50

December 31, 2020          16.00

  • Aggie Supplies' shares represent a 1% interest in Reveille Couture. Aggie Supplies does not have significant influence over Reveille Couture.
  • On December 15, 2020, Aggie sold 500 shares of Reveille Couture at the trading price. Aggie Supplies adjusts the Fair Value Adjustment Account at year-end only.

Question 1: What is the net impact on the income statement for the year ended December 31, 2020, related to all of the Aggie Supplies' investment activities?

Reference no: EM132506827

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