Question 28:
1. Could you give us with a list all trading securities, providing the cost and market value of each at December 31, 20X3 and 31st December, 20X4?
Our investments in trading securities at 31st December, 20X4 are as given:
Number of Shares Cost Market Value
General Electric 200 $15,000 $16,400
General Motors 1,225 7,000 9,720
Our investments in trading securities at 31st December, 20X3 were as given:
Number of Shares Cost Market Value
General Electric 200 $15,000 $17,240
General Mills 300 18,000 19,400
General Motors 1,225 7,000 10,100
General Mills, which cost $18,000, was sold for $20,100, net of commissions.
2. Since you still own General Motors and General Electric, could these be reclassified to long-term securities?
Well, our intent in holding these securities is still to sell them as soon as probable for a profit, so we think they qualify as trading securities. The market is just not cooperating with us at the moment.