E17-19B (Fair Value Measurement) Presented below is information related to the purchases of common stock by Thomlin Company during 2014. Cost Fair Value (at purchase date) (at December 31) Investment in Azul Company stock $200,000 $221,000 Investment in J

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E17-19B (Fair Value Measurement) Presented below is information related to the purchases of common
stock by Thomlin Company during 2014.
                                                                                 Cost                                      Fair Value
                                                                   (at purchase date)                     (at December 31)
Investment in Azul Company stock               $200,000                                    $221,000
Investment in Justin Corporation stock          271,000                                      285,000
Investment in Tiger Inc. stock                           185,000                                      260,000
Total                                                                     $656,000                                    $766,000
Instructions
(a) What entry would Thomlin make at December 31, 2014, to record the investment in Azul Company stock if it chooses to report this security using the fair value option?
(b) What entry would Thomlin make at December 31, 2014, to record the investment in Justin Corproaion, assuming that Thomlin wants to classify this security as available-for-sale? This security is the only available-for-sale security that Thomlin presently owns.
(c) What entry would Thomlin make at December 31, 2014, to record the investment in Tiger Inc., assuming that Thomlin wants to classify this investment as a trading security?

    • 7 years ago
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