Question - Prepare the journal entry to record unrealized gain or loss related to the investment in Arroyo Company stock at December 31, 2015
In addition, assume that the investment in the Woods Inc. stock was sold during 2015 for $195,000. At December 31, 2015, the following information relates to its two remaining investments of common stock.
Net income before any security gains and losses for 2015 was $905,000. The Arroyo Company stock is reported using the fair value option, The Lee Corporation investment is classified as available-for-sale and the Woods, Inc. investment is a trading security.
Compute the amount of net income or net loss that Lilly should report for 2015, taking into consideration Lilly's security transactions for 2015.