1.) Rice Corporation has the following investment which was held throughout 20182019: Fair Value Cost ...
Question:
1.) Rice Corporation has the following investment which was held throughout 2018–2019:
Fair Value
Cost 12/31/18 12/31/19
Equity Investment: $972,000 $1,281,000 $1,230,000
The equity investments is recorded using the fair value method as no ownership % is greater than 20%. What is the balance of the Fair Value Adjustment Account-Equity Investments at 12/31/2019?
(Be sure to include debit or credit in your answer for example $10,000 debit)
2.) On its December 31, 2017 balance sheet, Beans Company appropriately reported a $10,000 debit balance in its Fair Value Adjustment account. There was no change during 2018 in the composition of Bean’s portfolio of debt investments held as available-for-sale debt securities. The following information pertains to that portfolio:
Security Cost Fair Value at 12/31/18
A $124,000 $151,000
B $ 94,000 $ 85,500
C $163,000 $113,000
TOTALS: $381,000 $349,500
The amount of unrealized loss to appear as other comprehensive income for the year ending December 31, 2018 is…?
Intermediate Accounting
ISBN: 978-0132162302
1st edition
Authors: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella