Assume the same information as in E16.19 for Lilly Company. In addition, assume that the investment in

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Assume the same information as in E16.19 for Lilly Company. In addition, assume that the investment in the Woods Inc. stock was sold during 2026 for $195,000. At December 31, 2026, the following information relates to its two remaining investments of common stock.image


Net income before any security gains and losses for 2026 was $905,000.



Instructionsa. Compute the amount of net income or net loss that Lilly should report for 2026, taking into consideration Lilly’s security transactions for 2026.


b. Prepare the journal entry to record unrealized gain or loss related to the investment in Arroyo Company stock at December 31, 2026.

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Intermediate Accounting

ISBN: 9781119790976

18th Edition

Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield

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