On November 1, 2020, Aggie Supplies, Inc. purchased 2,000 shares of Reveille Couture, Inc. for $30,000. Reveille Couture shares are actively traded. The per share stock prices were: Share Price November 1, 2020 $15.00 December 15, 2020 14.50 December 31, 2020 16.00 Aggie Supplies’ shares represent a 1% interest in Reveille Couture. Aggie Supplies does not have significant influence over Reveille Couture. On December 15, 2020, Aggie sold 500 shares of Reveille Couture at the trading price. Aggie Supplies adjusts the Fair Value Adjustment Account at year-end only. What is the net impact on the income statement for the year ended December 31, 2020, related to all of the Aggie Supplies’ investment activities?
On November 1, 2020, Aggie Supplies, Inc. purchased 2,000 shares of Reveille Couture, Inc. for $30,000. Reveille Couture shares are actively traded. The per share stock prices were:
|
Share Price |
|
|
November 1, 2020 |
$15.00 |
|
December 15, 2020 |
14.50 |
|
December 31, 2020 |
16.00 |
Aggie Supplies’ shares represent a 1% interest in Reveille Couture. Aggie Supplies does not have significant influence over Reveille Couture.
On December 15, 2020, Aggie sold 500 shares of Reveille Couture at the trading price. Aggie Supplies adjusts the Fair Value Adjustment Account at year-end only.
What is the net impact on the income statement for the year ended December 31, 2020, related to all of the Aggie Supplies’ investment activities?
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