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Unformatted text preview: or sale portfolio has an aggregate market value of $95,000. Required: 147.Prepare the appropriate journal entries to record the transactions for the year including year-end adjustments. Show calculations. Jackson Company engaged in the following investment transactions during the current year. Required: 148.(1) What is the fair value of Eastwood's investment in Van Cleef? Briefly explain your choice of fair value, and relate that choice to the requirements of GAAP regarding fair value measurement. (2) Prepare a journal entry to record any necessary fair value adjustment. Eastwood Enterprises owns 30,000 shares of the Van Cleef Company (5% of the outstanding equity of Van Cleef). Eastwood is trying to determine Van Cleef's fair value. The relevant facts are as follows: • Eastwood bought the Van Cleef shares earlier in the accounting period for $10/share at a time when the shares were publicly traded on the New York Stock Exchange. • Since Eastwood bought the shares, Van Cleef has been delisted and there is no longer an active market in the Van Cleef shares. • Eastwood's internal valuation spet estimates the Van Cleef shares to be worth $8/share. Eastwood plans to continue holding the shares, but may someday sell them if their value increases sufficiently. Required: 149.(1.) What is the appropriate reporting category for this stock? Why? (2.) Prepare the adjusting entry on December 31, 2012. (3.) Prepare the adjusting entry on December 31, 2013. On March 17, 2012, Union Corporation purchased 5,000 shares of AZQ common stock as a long-term investment at $40 per share. On December 31, 2012, and December 31, 2013, the market value of the AZQ stock is $42 and $43, respectively. Required: In its 2013 annual report to shareholders, Kirby Inc. included the following disclosure regarding its available for sale investments in securities: 150.Prepare the journal entry (in thousands) that Kirby made at the end of 2013 to record the information disclosed above. Required: 151.Briefly explain the adjustments and why they occurred. In 2012, Kirby made two adjustments to its available for sale investments. Required: Fragrance International, a large perfume manufacturer, reported the following in its 2013 annual report to shareholders: ACCUMULATED OTHER COMPREHENSIVE INCOME The components of accumulated other comprehensive income...
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