During 2012, Norcross Corporation held a portfolio of available-for-sale securities having a cost of $175,000. There were

Question:

During 2012, Norcross Corporation held a portfolio of available-for-sale securities having a cost of $175,000. There were no purchases or sales of investments during the year. The market values at the beginning and end of the year were $215,000 and $150,000, respectively. The net income for 2012 was $110,000, and no dividends were paid during the year. The Stockholders’ Equity section of the balance sheet was as follows on December 31, 2011:

Norcross Corporation

Stockholders’ Equity

December 31, 2011

Common Stock....................$ 50,000

Paid-in Capital in excess of par value ........... 350,000

Retained earnings................... 265,000

Unrealized gain (loss) on available-for-sale investments... 40,000

Total ...................... $705,000

Prepare the Stockholders’ Equity section of the balance sheet for December 31, 2012.

Balance Sheet
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