A company has the following investment activity during 2016 and 2017: Security Type Date of Aquisition...

A company has the following investment activity during 2016 and 2017:

Security	Type	Date of Aquisition	Cost	Fair value at 12/21/16	Date of Sale	Selling Price	Fair value at 12/21/17
A	Trading	3/5/16	$350,000	N/A	6/3/16	$325,000	N/A
B	Trading	7/14/16	225,000	$252,000	1/15/17	235,000	N/A
C	Trading	9/1/17	400,000	N/A	N/A	N/A	$410,000
D	AFS	8/2/16	175,000	190,000	4/2/17	213,000	N/A
E	AFS	11/20/16	300,000	250,000	N/A	N/A	215,000
F	AFS	4/6/17	710,000	N/A	N/A	N/A	690,00

Security E is impaired in 2017, but is not impaired in 2016. Security F is not impaired in 2017.

Required

a. Prepare the journal entries to record the above information for 2016 and 2017, assuming the company’s

reporting year ends December 31.

b. Show how this information is presented in the company’s balance sheet, income statement, and

statement of comprehensive income for 2016 and 2017.

Expert Solution

ekkarill92 answered 2 years ago

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