Fernandez SA invested its excess cash in equity investments during 2019. The business model for these investments is to profit from trading on price changes.
Instructions
a. As of December 31, 2019, the equity investment portfolio consisted of the following.

What should be reported on Fernandez's December 31, 2019, statement of financial position relative to these investments? What should be reported on Fernandez's 2019 income statement?
b. During the year 2020, Fernandez sold 2,000 shares of Poley Corp. for ‚¬38,200 and purchased 2,000 more shares of Lindsay Jones, Inc. and 1,000 shares of Duff Company. On December 31, 2020, Fernandez's equity investment portfolio consisted of the following.

What should be reported on Fernandez's December 31, 2020, statement of financial position? What should be reported on Fernandez's 2020 income statement?
c. During the year 2021, Fernandez sold 3,000 shares of Lindsay Jones, Inc. for ‚¬39,900 and 500 shares of Duff Company at a loss of ‚¬2,700. On December 31, 2021, Fernandez's equity investment portfolio consisted of the following.

What should be reported on the face of Fernandez's December 31, 2021, statement of financial position? What should be reported on Fernandez's 2021 income statement?

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Investment Lindsay Jones, Inc. 1,000 shares Poley Corp. Arnold Aircraft Cost Fair Value Quantity € 15,000 € 21,000 2,000 shares 42,000 40,000 2,000 shares 72,000 60,000 Totals €127,000 €123,000 Cost Fair Value Investment Lindsay Jones, Inc. 1,000 shares Lindsay Jones, Inc. 2,000 shares Duff Company Arnold Aircraft Quantity € 15,000 €20,000 40,000 12,000 33,000 1,000 shares 2,000 shares 16,000 72,000 22,000 Totals €136,000 €94,000