Pam invested in the following equity securities, all of which she purchased on 12-14-18. For each investment,
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- Pam invested in the following equity securities, all of which she purchased on 12-14-18. For each investment, Pam owns less than 5% of the investee’s outstanding common stock.
Fair value* | Fair value* | Fair value* | |||
Name of Company | Number of shares | Cost per share | 12/31/18 | 12/31/19 | 12/31/20 |
G&P | 1,000 | $10 | $12 | $13 | $16 |
MartWal | 2,000 | $14 | $15 | $11 | $17 |
Worsham | 1,500 | $20 | $19 | $24 | $23 |
Hoosier | 2,500 | $40 | $50 | $65 | $51 |
* per share amounts
The following transactions related to Pam’s investments occurred during 2019:
- On 05-10-19, Pam received a $0.20 cash dividend on each share of the Worsham stock.
- On 08-20-20, Pam sold one-third of the Worsham stock for $30 per share.
Pam closes her books every December 31. Prepare the entries Pam should make on:
- 12-14-18.
- 12-31-18.
- 05-10-19.
- 12-31-19.
- 08-20-20.
- 12-31-20.
Related Book For
South-Western Federal Taxation 2020 Comprehensive
ISBN: 9780357109144
43rd Edition
Authors: David M. Maloney, William A. Raabe, James C. Young, Annette Nellen, William H. Hoffman
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