Problem 130
Perez Company began operations in 2013. Since then, it has reported the following gains and losses for its investments in trading securities on the income statement:
|
|
2013 |
|
|
2014 |
|
|
2015 |
|
Gains (losses) from sale of trading securities |
|
$14,900 |
|
|
$(20,700) |
|
$14,000 |
|
Unrealized holding losses on valuation of trading securities |
|
(25,700) |
|
― |
|
|
(14,400) |
Unrealized holding gain on valuation of trading securities |
|
― |
|
|
10,300 |
|
|
― |
|
At January 1, 2016, Perez owned the following trading securities:
|
|
Cost |
BKD Common (16,000 shares) |
|
$464,000 |
LRF Preferred (1,700 shares) |
|
178,500 |
Drake Convertible bonds (100 bonds) |
|
116,000 |
During 2016, the following events occurred:
At 12/31/16, the fair values for Perez’s trading securities were:
BKD Common, $28 per share |
LRF Preferred, $110 per share |
Drake Bonds, $1,030 per bond |
Horton Common, $44 per share |
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|
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|