Question: Before its acquisition by Royal Dutch Shell Pennzoil Company held

Before its acquisition by Royal Dutch Shell, Pennzoil Company held a portfolio of trading equity securities that cost $660,100,000 and had a market value of $955,182,000 on January 1. Assume that the same portfolio was held until the end of the first quarter of the year. The market value of the portfolio was $980,160,000 at January 31, $940,000,000 at February 29, and $960,000,000 at March 31.
1. Prepare a tabulation showing the balance sheet presentation and income statement presentation for monthly reporting purposes.
2. Show the journal entries for January, February, and March.
3. How would your answer to requirement 1 change if the securities were classified as available-for-sale?

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  • CreatedFebruary 20, 2015
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