Highland Industries Inc. makes investments in available-for-sale securities. Selected income statement items for the years ended December 31, Year 2 and Year 3, plus selected items from comparative balance sheets, are as follows: There were no dividends. Determine the missing items. If required, use the minus sign to indicate a net or operating loss, unrealized losses, or a credit balance in the valuation allowance account. Highland Industries Inc. Selected Income Statement Items For the Years Ended December 31, Year 2 and Year 3 Operating Income (Loss) Gain (Loss) from Sale of Investments Net Income (Loss) Year 2 Year 3 7,500 (12,000) $(21,000) Highland Industries Inc. Selected Balance Sheet Items December 31, Year 1, Year 2, and Year 3 Dec. 31, Year 1 Dec. 31, Year 2 Dec. 31, Year 3 Assets Available-for-Sale Investments, at Cost Valuation Allowance for Available-for-Sale Investments $90,000 12,000 $86,000 (11,000) Available-for-Sale Investments, at Fair Value Stockholders' Equity Unrealized Gain (Loss) on Available-for-Sale Investments Retained Earnings $102,000 (16,400) $175,400 $220,000

Highland Industries Inc. makes investments in available-for-sale securities. Selected income statement items for the years ended December 31, Year 2 and Year 3, plus selected items from comparative balance sheets, are as follows: There were no dividends. Determine the missing items. If required, use the minus sign to indicate a net or operating loss, unrealized losses, or a credit balance in the valuation allowance account. Highland Industries Inc. Selected Income Statement Items For the Years Ended December 31, Year 2 and Year 3 Operating Income (Loss) Gain (Loss) from Sale of Investments Net Income (Loss) Year 2 Year 3 7,500 (12,000) $(21,000) Highland Industries Inc. Selected Balance Sheet Items December 31, Year 1, Year 2, and Year 3 Dec. 31, Year 1 Dec. 31, Year 2 Dec. 31, Year 3 Assets Available-for-Sale Investments, at Cost Valuation Allowance for Available-for-Sale Investments $90,000 12,000 $86,000 (11,000) Available-for-Sale Investments, at Fair Value Stockholders' Equity Unrealized Gain (Loss) on Available-for-Sale Investments Retained Earnings $102,000 (16,400) $175,400 $220,000

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter9: Metric-analysis Of Financial Statements

Section: Chapter Questions

Problem 9.23E: Unusual income statement items Assume that the amount of each of the following items is material to...

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