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E17-20B (Fair Value Measurement Issues) Assume the same information as in E17-19B for Thomlin Company. In addition, assume that the investment in the Tiger Inc. stock was sold during 2015 for $278,000. At December 31, 2015, the following information relat

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E17-20B (Fair Value Measurement Issues) Assume the same information as in E17-19B for Thomlin Company.;In addition, assume that the investment in the Tiger Inc. stock was sold during 2015 for $278,000.;At December 31, 2015, the following information relates to its two remaining investments of common stock.;Cost Fair Value;(at purchase date) (at December 31);Investment in Azul Company stock $200,000 $195,000;Investment in Justin Corporation stock 271,000 290,000;Total $471,000 $485,000;Net income before any security gains and losses for 2015 was $1,200,000.;Instructions;(a) Compute the amount of net income or net loss that Thomlin should report for 2015, taking into consideration Thomlin?s security transactions for 2015.;(b) Prepare the journal entry to record unrealized gain or loss related to the investment in Azul Company stock at December 31, 2015.

 

Paper#78448 | Written in 18-Jul-2015

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