QUESTION $47$

On its December $31,2024,$ balance sheet, Tango Company reported its investment in equity securities$,$ which are classified as available$-$for$-$sale had cost $$600,000,$ at fair value of $$560,000.$ At December $31,2025,$ the fair value of the securities was $$585,000.$ Which of the following will Tango report in its $2025$ financial statements?

a$.$ Available for Sale Equity Securities at fair value of $$585,000$ and an unrealized holding gain of $$25,000$ in net income

b$.$ Available for Sale Equity Securities at fair value of $$585,000$ and an unrealized holding gain of $$25,000$ in other comprehensive income

c$.$ Available for Sale Equity Securities at cost of $$600,000$ plus Fair Value Adjustment of $$15,000$ and an unrealized holding loss of $$15,000$ in net income.

d$.$ Available for Sale Equity Securities at fair value of $$585,000$ and an unrealized holding loss of $$15,000$ in net income

$1$ points

QUESTION $48$

In $2024,$ Woods Company purchased $80,000$ shares of Holmes Corporation common stock for $$1,260,000$ as an equity investment. The fair value of these shares was $$1,200,000$ at December $31,2024.$ Woods sold all of the Holmes stock for $$17$ per share on December $3,2025,$ incurring $$56,000$ in brokerage commissions. Woods Company should report a realized gain on the sale of stock in $2025$ of

a$.$ $$44,000.$

b$.$ $$100,000.$

c$.$ $$104,000.$

d$.$ $$160,000.$

$1$ points

QUESTION $49$

Ziegler Corporation purchased $25,000$ shares of common stock of the Sherman Corporation for $$40$ per share on January $2,2024.$ Sherman had $100,000$ shares of common stock outstanding and paid cash dividends of $$150,000$ and reported net income of $$500,000$ in $2025.$ Ziegler should report investment income for $2025$ of

a$.$ $$37,500.$

b$.$ $$87,500.$

c$.$ $$125,000.$

d$.$ $$137,500.$