Text: Cost
Fair Value
(at purchase date)
(at December 31)
Investment in Arroyo Company stock
$238,000 $188,000 $519,000
$74,000 $283,000 $198,000 $555,000
Investment in Lee Corporation stock
Investment in Woods Inc. stock
Total
(Assume a zero balance for any Fair Value Adjustment account.)
(a) What entry would Concord make at December 31, 2017, to record the investment in Arroyo Company stock if it chooses to report this security using the fair value option?
(b) What entry would Concord make at December 31, 2017, to record the investments in the Lee and Woods corporations, assuming that Concord did not select the fair value option for these investments?
(Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
No. Account Titles and Explanation X (a) Loss on Sale of Investments
Debit
Credit
X Debt Investments
x
(b) Fair Value Adjustment