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What will be reported as the balance in investment accounts

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Question - Jones Inc. had the following transactions during 2012:

1. Purchased 10,000 shares of XYZ Inc. for $4 each. The investment was accounted for as trading securities.

2. Purchased 5,000 shares of ABC Inc. for $7.50 each. The investment was accounted for as available-for-sale securities.

During 2012, XYZ paid $0.20 in dividends per share and ABC paid $.50 in dividends per share. As of December 31, 2012 the fair market value of XYZ Inc. was $4.25 per share and the fair market value of ABC Inc. was $6.75 per share.

Required:

1. What will be reported on the Income Statement?

2. What will be reported as the balance in the investment accounts?

3. What amount will be reported as other comprehensive income?

Reference no: EM131870278

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