Question

1. Missing Statement Items, Available-for-Sale Securities

   Highland Industries Inc. makes investments in available-for-sale securities. Selected income statement items for the years ended December 31, Year 2 and Year 3, plus selected items from comparative balance sheets, are as follows:

   There were no dividends.

   Determine the missing items. If required, use the minus sign to indicate a net or operating loss, unrealized losses, or a credit balance in the valuation allowance account.

   Highland Industries Inc.
   Selected Income Statement Items
   For the Years Ended December 31, Year 2 and Year 3
   	Year 2	Year 3
   Operating Income (Loss)	$	$
   Gain (Loss) from Sale of Investments	4,980	(9,960)
   Net Income (Loss)	$	$(13,700)

   Highland Industries Inc.
   Selected Balance Sheet Items
   December 31, Year 1, Year 2, and Year 3
   	Dec. 31, Year 1	Dec. 31, Year 2	Dec. 31, Year 3
   Assets
   Available-for-Sale Investments, at Cost	$97,110	$84,660	$118,280
   Valuation Allowance for Available-for-Sale Investments	6,230	(7,470)
   Available-for-Sale Investments, at Fair Value
   Stockholders' Equity
   Unrealized Gain (Loss) on Available-for-Sale Investments			(8,720)
   Retained Earnings	$204,180	$288,840	$

Answer 1