Refer to the data in ED- 5.
Per Share
12/ 31/ 2015… $ 45
12/ 31/ 2016... 42
Required:
1. Assume that management intends to hold the stock as available- for- sale securities for three years or more. Show how the stock investment and its net unrealized losses/gains would be reported at each year- end on the classified balance sheet and income statement.
2. Assume that management purchased the stock as trading securities. Show how the investment and net unrealized losses/gains would be reported at each year- end on the classified balance sheet and income statement.