You have received your investment portfolio year-end statement from your broker, Rich Waldman. All investments were purchased at the January prices and held the entire year.Portfolio Year-End StatementInvestmentNumberDividendPrice—Jan. 1Price—Dec. 31FernRod Corp.400 shares$.30$38.38$45.75Crown Realty, Inc.500 shares0$74.50$70.13Sterling Mines200 shares$.24$27.88$29.25SJB Enterprises300 shares$3.00$68.75$64.63GTech 7.125% 1620 bonds $98.50$101.38Comet 9.875% 1710 bonds $103.88$100.75 Calculate how much profit or loss you made for the year, including stock dividends and bond interest.What was the total return on investment for your portfolio?Using a broker’s commission of 3% buying and 3% selling on the stocks and $5 buying and $5 selling per bond, how much profit or loss would you make if you liquidated your entire portfolio at the December 31 prices?What would be the return on investment?

1)Calculate profit or loss for each investment:FernRod Corp.:Bought: 400 shares * $38.38 =…

Answered: You have received your investment…

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter13: Investments And Long-term Receivables

Section: Chapter Questions

Problem 14P: Investments in Equity Securities Noonan Corporation prepares quarterly financial statements and...

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Question

You have received your investment portfolio year-end statement from your broker, Rich Waldman. All investments were purchased at the January prices and held the entire year.

Portfolio Year-End Statement
Investment	Number	Dividend	Price—Jan. 1	Price—Dec. 31
FernRod Corp.	400 shares	$.30	$38.38	$45.75
Crown Realty, Inc.	500 shares	0	$74.50	$70.13
Sterling Mines	200 shares	$.24	$27.88	$29.25
SJB Enterprises	300 shares	$3.00	$68.75	$64.63
GTech 7.125% 16	20 bonds		$98.50	$101.38
Comet 9.875% 17	10 bonds		$103.88	$100.75

1. Calculate how much profit or loss you made for the year, including stock dividends and bond interest.
2. What was the total return on investment for your portfolio?
3. Using a broker’s commission of 3% buying and 3% selling on the stocks and $5 buying and $5 selling per bond, how much profit or loss would you make if you liquidated your entire portfolio at the December 31 prices?
4. What would be the return on investment?