Market value of available-for-sale securities


Callas Corporation paid $380,000 to acquire 40 percent ownership of Thinbill Company on January 1, 20X9. The amount paid was equal to underlying book value. During 20X9, Thinbill reported operating income of $45,000, an increase of $10,000 in the market value of trading secu- rities held for the year, and an increase of $20,000 in the market value of available-for-sale securities held for the year. Thinbill paid dividends of $9,000 on December 10, 20X9.

Required:

Give all journal entries that Callas Corporation recorded in 20X9, including closing entries at December 31, 20X9, associated with its investment in Thinbill Company.

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Accounting Basics: Market value of available-for-sale securities
Reference No:- TGS056826

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