Walker Company has an investment portfolio of equity securities available for sale. Walker does not own more

Question:

Walker Company has an investment of equity securities available for sale. Walker does not own more than 5% of the outstanding voting stock for any of the securities in the At the beginning of the year, the aggregate market value of the exceeded its cost. It received cash dividends on these securities during the year. It sold none of the securities in the during the year. At the end of the year, the aggregate cost of the exceeded its market value. The decline in the market price of the securities in the is attributable to general market decline.
During this year, Walker purchased for cash 35% of the outstanding voting stock of Sipe Company. It received cash dividends on this investment from Sipe during the year, and Sipe reported its earnings after the acquisition date to Walker.

Required
1. Explain how Walker reports on its and income statement the effects of its investment in the securities available for sale for the year.
2. Explain how Walker reports on its and income statement the effects of its investment in Sipe for the year.

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial... Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...