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Presented below is information related to the purchases of common stock by Larkspur Company during 2025. Investment in Arroyo Company stock Investment in Lee Corporation stock Investment in Woods Inc. stock Total (a) (b) Cost Fair Value (at purchase date) (at December 31) $74,000 $92,000 (b) 265,000 No. Account Titles and Explanation (a) 178,000 $535,000 (Assume a zero balance for any Fair Value Adjustment account at the beginning of 2025.) 312,000 189,000 $575,000 What entry would Larkspur make at December 31, 2025, to record the investment in Arroyo Company stock if it chooses to report this security using the fair value option? What entry would Larkspur make at December 31, 2025, to record the investments in the Lee and Woods corporations, assuming that Larkspur did not select the fair value option for these investments? (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Debit Credit

Presented below is information related to the purchases of common stock by Larkspur Company during 2025. Investment in Arroyo Company stock Investment in Lee Corporation stock Investment in Woods Inc. stock Total (a) (b) Cost Fair Value (at purchase date) (at December 31) $74,000 $92,000 (b) 265,000 No. Account Titles and Explanation (a) 178,000 $535,000 (Assume a zero balance for any Fair Value Adjustment account at the beginning of 2025.) 312,000 189,000 $575,000 What entry would Larkspur make at December 31, 2025, to record the investment in Arroyo Company stock if it chooses to report this security using the fair value option? What entry would Larkspur make at December 31, 2025, to record the investments in the Lee and Woods corporations, assuming that Larkspur did not select the fair value option for these investments? (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Debit Credit

FINANCIAL ACCOUNTING
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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Presented below is information related to the purchases of common stock by Larkspur Company during 2025. Investment in Arroyo Company stock Investment in Lee Corporation stock Investment in Woods Inc. stock Total (a) (b) Cost (at purchase date) $92,000 (b) 265,000 No. Account Titles and Explanation (a) 178,000 $535,000 (Assume a zero balance for any Fair Value Adjustment account at the beginning of 2025.) Fair Value (at December 31) $74,000 312,000 189,000 $575,000 What entry would Larkspur make at December 31, 2025, to record the investment in Arroyo Company stock if it chooses to report this security using the fair value option? What entry would Larkspur make at December 31, 2025, to record the investments in the Lee and Woods corporations, assuming that Larkspur did not select the fair value option for these investments? (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Debit Credit
Transcribed Image Text:Presented below is information related to the purchases of common stock by Larkspur Company during 2025. Investment in Arroyo Company stock Investment in Lee Corporation stock Investment in Woods Inc. stock Total (a) (b) Cost (at purchase date) $92,000 (b) 265,000 No. Account Titles and Explanation (a) 178,000 $535,000 (Assume a zero balance for any Fair Value Adjustment account at the beginning of 2025.) Fair Value (at December 31) $74,000 312,000 189,000 $575,000 What entry would Larkspur make at December 31, 2025, to record the investment in Arroyo Company stock if it chooses to report this security using the fair value option? What entry would Larkspur make at December 31, 2025, to record the investments in the Lee and Woods corporations, assuming that Larkspur did not select the fair value option for these investments? (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Debit Credit
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