Rahul Presented below is information related to the purchases of common stock by Oriole Company during 2025.Cost(at purchase date)Fair Value(at December 31)Investment in Arroyo Company stock$104,000$82,000Investment in Lee Corporation stock266,000318,000Investment in Woods Inc. stock185,000194,000Total$555,000$594,000(Assume a zero balance for any Fair Value Adjustment account at the beginning of 2025.)(a)What entry would Oriole make at December 31, 2025, to record the investment in Arroyo Company stock if it chooses toreport this security using the fair value option?(b)What entry would Oriole make at December 31, 2025, to record the investments in the Lee and Woods corporations,assuming that Oriole 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. Ifno entry is required, select "No Entry" for the account titles and enter O for the amounts.)No. Account Titles and ExplanationDebitCredit(a)(b)

Investment means an asset purchased in expectation of earning a return on such investment in future…

Presented below is information related to the purchases of common stock by Oriole Company during 2025. Cost (at purchase date) Fair Value (at December 31) Investment in Arroyo Company stock $104,000 $82,000 Investment in Lee Corporation stock 266,000 318,000

Presented below is information related to the purchases of common stock by Oriole Company during 2025. Cost (at purchase date) Fair Value (at December 31) Investment in Arroyo Company stock $104,000 $82,000 Investment in Lee Corporation stock 266,000 318,000

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

Rahul

Presented below is information related to the purchases of common stock by Oriole Company during 2025.
Cost
(at purchase date)
Fair Value
(at December 31)
Investment in Arroyo Company stock
$104,000
$82,000
Investment in Lee Corporation stock
266,000
318,000
Investment in Woods Inc. stock
185,000
194,000
Total
$555,000
$594,000
(Assume a zero balance for any Fair Value Adjustment account at the beginning of 2025.)
(a)
What entry would Oriole 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?
(b)
What entry would Oriole make at December 31, 2025, to record the investments in the Lee and Woods corporations,
assuming that Oriole 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.)
No. Account Titles and Explanation
Debit
Credit
(a)
(b)

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