On December 31, 2008, the total fair value of the securities was equal to its cost. In 2009, the following transactions occurred.
At December 31, the fair values per share of the common stocks were: Hurst Co. $32, Pine Co. $8, and Scott Co. $18.
Davison Carecenters Inc. provides financing and capital to the health-care industry, with a particular focus on nursing homes for the elderly. The following selected transactions relate to bonds acquired as an investment by Davison, whose fiscal year ends on December 31.
(Assume that all intervening transactions and adjustments have been properly recorded and that the number of bonds owned has not changed from December 31, 2008, to December 31, 2010.)
The unrealized gain or loss would reported in the Property, plant and equipmentCost of goods soldStockholders' equityOther revenues and gainsOperating expensesCurrent liabilitiesOther expenses and lossesLong-term liabilitiesCurrent assetsRevenues section of the retained earnings statementbalance sheetincome statement.