On January 7, 2020, Webb Industries purchased 1,000 shares of Class A common stock in Bloomberg Corporation for $41,000. Webb does not have significant influence or control over Bloomberg. Although Class A shares are not actively traded, Class B shares are traded and are nearly identical aside from being publicly traded. At the end of 2020, Class B shares are trading for $46 per share. Webb makes the appropriate election to measure the stment based on observable price changes for similar securities. On December 12, 2021, Webb Industries sells the Bloomberg stock for 560,000. As of the end of 2021, Webb has no investments in equity securities.

On January 7, 2020, Webb Industries purchased 1,000 shares of Class A common stock in Bloomberg Corporation for $41,000. Webb does not have significant influence or control over Bloomberg. Although Class A shares are not actively traded, Class B shares are traded and are nearly identical aside from being publicly traded. At the end of 2020, Class B shares are trading for $46 per share. Webb makes the appropriate election to measure the stment based on observable price changes for similar securities. On December 12, 2021, Webb Industries sells the Bloomberg stock for 560,000. As of the end of 2021, Webb has no investments in equity securities.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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