Question: Use the data given in Exercise. On August 4, 2015, Creative Investments sold its investment in Microscape stock for $ 43 per share. In Exercise,

Use the data given in Exercise. On August 4, 2015, Creative Investments sold its investment in Microscape stock for $ 43 per share.

In Exercise, Creative Investments completed these long-term, available-for-sale investment transactions during 2014:

Jan. 14 Purchased 500 shares of Microscape stock, paying $ 54 per share. The investment represents 2% ownership in Microscape’s voting stock. Creative intends to hold the investment for the indefinite future.

Aug. 22 Received a cash dividend of $ 0.30 per share on the Microscape stock.

Dec. 31 Adjusted the investment to its current market value of $ 52 per share.

31 Microscape reported net income of $ 200,000 for the year ended 2014.

Requirements

1. Journalize the sale. Explanations are not required.

2. What account(s) and amount(s), if any, would be reported on Creative’s December 31, 2015, financial statements?

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