See attached file for clarity.
The investment portfolio of Elle E. Fant Fashions appears below.
Security Classification Cost Fair Value 12/31/06 Fair Value 12/31/07
Coram Cola Trading 10,000 9,500 10,000
Rears & Sobuck Trading 5,000 6,000 6,250
JC Dime Trading 15,000 15,000 7,500
Lackawaxen Online Available for Sale 10,000 20,000 35,000
Scranton City Bond Held to Maturity 20,000 19,500 19,700
? What effect will the change in value of the investment portfolio have on Elle E. Fant's income statement n 2007?
? Assuming the Scranton bond was purchased at face value, what is the carrying value of the investment portfolio at 12/31/07?
Archibald Widgets, Inc. makes an inventory adjustment at year end to write is inventory down to the lower cost or market. Currently Archibald has 1000 widgets in inventory valued at $2,000.
Cost per unit:
Historical Cost: $2.00 per unit
Price Floor: .75 per unit
Price Ceiling: 1.75 per unit
Replacement Cost: 2.00 per unit
What adjustment would Archibald make on the books at the end of the year; Archibald doesn't use an allowance account.
What effect will the change in value of the investment portfolio have on Elle E. Fant's income statement in 2007?
Only the trading securities have impact on net income
Impact on income statement = ...
The expert determines the investment portfolio effects on income statements.