Presented below is information related to the purchases of common stock by Marigold Company during 2025. Investment in Arroyo Company stock Investment in Lee Corporation stock Investment in Woods Inc. stock Total (a) Cost Fair Value (at purchase date) (at December 31) $102,000 $84,000 259,000 (b) 184,000 $545,000 314,000 193,000 (Assume a zero balance for any Fair Value Adjustment account at the beginning of 2025.) $591,000 What entry would Marigold 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 Marigold make at December 31, 2025, to record the investments in the Lee and Woods corporations, assuming that Marigold did not select the fair value option for these investments?

Presented below is information related to the purchases of common stock by Marigold Company during 2025. Investment in Arroyo Company stock Investment in Lee Corporation stock Investment in Woods Inc. stock Total (a) Cost Fair Value (at purchase date) (at December 31) $102,000 $84,000 259,000 (b) 184,000 $545,000 314,000 193,000 (Assume a zero balance for any Fair Value Adjustment account at the beginning of 2025.) $591,000 What entry would Marigold 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 Marigold make at December 31, 2025, to record the investments in the Lee and Woods corporations, assuming that Marigold did not select the fair value option for these investments?

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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Question

Presented below is information related to the purchases of common stock by Marigold 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)
$102,000
$84,000
314,000
259,000
(b)
184,000
(Assume a zero balance for any Fair Value Adjustment account at the beginning of 2025.)
$545,000
No. Account Titles and Explanation
(a)
193,000
$591,000
What entry would Marigold 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 Marigold make at December 31, 2025, to record the investments in the Lee and Woods corporations,
assuming that Marigold 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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