Quiz 12

on January 1, 2016 Audrey Corp. paid $800,000 for 100,000 shares of Off Company's common stock, which represents 40% of Off's outstanding common stock. Off reported net income of $200,000 and paid cash dividends of $60,000 during 2016. Audrey should report the investment in Off Company on its December 31, 2016 balance sheet at

$856,000

Eck Corporation sells 250 shares of common stock being held as an investment. The shares were acquired 6 months ago at a cost of $25 a share. Eck sold the shares for $40 a share. The entry to record the sale is

Cash 10,000 Gain on the sale of stock investments 3750 Stock investments 6250

Debt investments that are held for collection are recorded at

fair value

corporations invest in other companies for all of the following reasons except to

increase trading of the other company's stock

which of the following would not be reported under "other revenues and gains" on the income statement

unrealized gain on non-trading securities