073Q7 solution

073Q7 solution - Name_Zhi Pei_ 4-Digit #_7688_...

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Zhi Pei ____________________________ 4-Digit #___ 7688 ____________ Section_____ 14518 ______ Accounting for Marketable Securities: [073Q7] The Amarone Company has the following portfolios with information as indicated. FMV means fair market value. Cost FMV Year 2 Sale FMV Year 3 Sale FMV Basis at 12/31/01 Proceeds at 12/31/02 Proceeds at 12/31/03 Trading Securities: Alpha Corp $40,000 $40,000 (1) $33,000 (2) $5,000 (2 ) $9,000 Beta Corp. 28,000 36,000 32,000 (5) $44,000 N/A Gamma 43,000 38,000 33,000 41,000 Available for Sale Portfolio [AFS]: Orange Corp $16,000 $18,000 (3) $10,000 (4) $9,000 (4) $11,000 Black Corp. 23,000 23,000 21,000 24,000 (1) 90% of the Alpha shares were sold for $33,000. (2) The fair market value of the remaining Alpha shares. (3) 50% of the Orange Corp. shares were sold for $10,000. (4) The fair market value of the remaining Orange Corp. shares. (5) All of the Beta Corp. shares were sold for $44,000. Quiz 7 continued on next page.
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073Q7 solution - Name_Zhi Pei_ 4-Digit #_7688_...

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