Kennedy Company has the following portfolio of trading investments at December 31, 2015.

On December 31, 2016, Kennedy’s portfolio of trading investments consisted of the following investments.

At the end of year 2016, Kennedy Company changed the classification of its investment in Frank, Inc. to non-trading when the shares were selling for $8 per share.
Instructions

(a) What should be reported on Kennedy’s December 31, 2015, statement of financial position relative to these equity investments?

(b) What should be reported on the face of Kennedy’s December 31, 2016, statement of financial position relative to the trading investments? What should be reported to reflect the transactions above in Kennedy’s 2016 income statement?

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Per Share Percent Investment Frank, Inc. Quantity Interest Cost Market 2,000 shares 8% $11 $16 Ellis Corp. 5,000 shares 14% 23 19 Mendota Company 4,000 shares 2% 31 24