Thomas Corporation purchased 25,000 shares of Powers Company for $250,000 on April 17. The market value of the shares decreased to $195,000 on December 31. Thomas reclassified the investment as trade securities in December of the following year when the market value had increased to $215,000. 

What amount should be reported on the year 2 income statement for Powers stock?

Answer rating: 100% (QA)

To determine the amount that should be reported on the year 2 income statement for Powers stock we n... View the full answer