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Reporting of stock ownership

Furriers purchased one thousand shares of Loose Corporation stock on January 10, 2005, for $800 per share and classified the investment as securities Available for Sale. Loose's market value was $400 per share on December 31, 2005. As of December 31, 2006, Dicker still owned the Loose's stock whose market value has declined to $100 per share. The decline is due to a reason that's judged to be other than temporary. In Furriers December 31, 2006, balance sheet and the 2006 income statement, what amounts would you report for the following?

a. Unrealized loss on investments to be reported under Stockholders' Equity
b. Loss on investments to be reported on the income statement
c. Reported total value of Loose's stock on Dicker's balance sheet

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a. Unrealized loss on investments to be reported under Stockholders' Equity

1,000 ...

Solution Summary

This solution is comprised of a detailed explanation to report unrealized loss on investments to be reported under Stockholders' Equity.

$2.19