On December 31, 2012, Ogallala Associates owned the following securities, held a
ID: 2378982 • Letter: O
Question
On December 31, 2012, Ogallala Associates owned the following securities, held as a long-term investment. The securities are not held for influence or control of the investee.
Common Stock
On December 31, 2012, the total fair value of the securities was equal to its cost. In 2013, the following transactions occurred.
At December 31, the fair values per share of the common stocks were: Carlene Co. $33, Riverdale Co. $7, and Raczynski Co. $19.
Common Stock
Shares Cost Carlene Co. 2,000 $60,000 Riverdale Co. 5,200 41,600 Raczynski Co. 1,620 34,020Explanation / Answer
.......... .......... ........... .......Fair value .......... Cost
Hurst Co. $32 x 1,200 = $38,400; ..........$36,000
Pine Co. $8 x 3,500 = $28,000; .............$31,500
Scott Co. $18 x 1,500 = $27,000; ..........$30,000
Totals .......... .......... ........$93,400 .......... .$97,500 <== loss of $4,100
Dr Fair value loss in OCI $4,100 (taken to AFS reserve in equity)
Cr AFS Stock investments $4,100
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