Homework SourseSecurity Quantity Cost Fair Value Security Quantity Cost Fai
| Security | Quantity | Cost | Fair Value | |||||
| Lindsay Jones, Inc. | 1,000 shares | $15,000 | $21,000 | |||||
| Poley Corp. | 2,000 shares | 39,600 | 41,700 | |||||
| Arnold Aircraft | 2,000 shares | 71,600 | 59,700 | |||||
| Totals | $126,200 | $122,400 |
Solution
Solution Part 1:
Solution part 2:
Now Loss or gain on sale of Shares of Poley corp. = Sale value - cost = $37800 - $39600 = - $1800 Loss
Unrealized holding Gain or loss on dec 31, 2018 = Current fair value of each remaining and new securities - Previous year\'s fair value of the remaing securities or cost of newly purchased securities
= ($20200- 21000) + (39900-33000) + (11800 -16000) + (21800-59700) = - $36000 Loss
Solution Part 3:
Now,
Loss or gain On sale of 3000 shares of Lindsay Jones Inc. = Sale value - cost
= $40100 - 15000 - 33000 = -$7900 Loss
Loss on sale of 500 shares of Duff company = -$2700 loss
Total Loss on Sale of investments = 7900 + 2700 = $10600
Unrealized holding gain or loss on Dec31, 2019 = Current fair value - Previous fair value
= (81600- 21800) + (6000 - 11800/2) = $59,900 Gain
| Indigo Corp. | |
| Balance Sheet (Partial) | |
| December 31,2017 | |
| Cureent Assets: | |
| Equity Investments | $122,400.00 |
