Fickle Financial buys and sells securities, expecting to earn profits on short-term differences in price. On December 28, Fickle purchased Microsoft common shares for $485,000. On December 31, the shares had a fair value of $483,000. Record the initial investment by Fickle and, if appropriate, an adjustment to record the investment at fair value.
Answer to relevant QuestionsFickle Financial buys and sells securities that it classifies as available-for-sale. On December 28, Fickle purchased Microsoft common shares for $485,000. On December 31, the shares had a fair value of $483,000. Record the ...Salt Foods purchases forty $1,000 7%, 10-year bonds issued by Pretzelmania, Inc., for $37,282 on January 1. The market interest rate for bonds of similar risk and maturity is 8%. Salt Foods receives interest semiannually on ...On January 1, Lifestyle Pools purchased 25% of Marshall Fence’s common stock for $ 700,000 cash. By the end of the year, Marshall Fence reported net income of $ 160,000 and paid dividends of $ 60,000 to all shareholders. ...On January 1, Twister Enterprises issues $ 600,000 of 6% bonds, due in 20 years, with interest payable semiannually on June 30 and December 31 each year. The market interest rate on the issue date is 7%. National Hydraulics, ...How is preferred stock reported differently under U. S. GAAP and IFRS? Do you think preferred stock is a liability or an equity item? Why?
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