Bellamonte Co. bought 3,000 shares of German common stock at $40; 620 shares of Chile stock at $47.75; and 1,800 shares of Sweden stock at $78—all as available-for-sale investments. At December 31, Hoover’s Online reports German stock at $30.125, Chile at $50.00, and Sweden at $70.00.
1. Determine the cost and the fair value of the long-term investment portfolio at December 31.
2. Record Bellamonte’s adjusting entry at December 31.
3. What would Bellamonte Co. report on its statement of other comprehensive income and balance sheet for the information given? Make the necessary disclosures. Ignore income tax.