Question: Working backward from data on marketable securities transaction. (Adapted from a problem by S.A. Zeff.) During 2008, Fischer/Black Co. purchased equity securities classified as securities

Working backward from data on marketable securities transaction. (Adapted from a problem by S.A. Zeff.) During 2008, Fischer/Black Co. purchased equity securities classified as securities available for sale. On May 22, 2009, the company recorded the following correct journal entry to record the sale of the equity securities:

a. What was the acquisition cost of these securities in 2008?
b. What was the market price of these securities at the end of 2008?
c. What is the total amount of securities gain or loss that Fischer/Black reports on the income statement for 2009?

16,000 Cash Realized Loss Unrealized Holding Loss Marketable Securities 5,000 3,000 18,000 Shareholders Equity Assets = Liabilities (Class.) IncSt RE +16,000 -5,000 +3,000 OCI AOCI -18,000

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