Chapter 17, Problem 11P

To determine

Income Statement: The income statement is a report which shows the company’s financial performance for the particular period of time. The statement shows the amount of revenues generated and expenses incurred by an organization and also the amount of the net profit or loss made by the organization.

Balance Sheet: Balance sheet is a statement which shows financial position of the business for the particular period of time. The statement consists of assets, liabilities and shareholders’ equity.

Fair value: Fair value is a selling price which is agreed by the buyer and seller. A probable estimate of the market price of good, service or asset based on the market situation is termed fair value.

Unrealized holding gains and losses: An unrealized gain is a profit recorded on paper results from the investment. It occurs when shares prices increase after investor purchases it, but an individual has to sell it, till the time it is not sold the amount of increase in share price is recorded as an unrealized gain.

An unrealized loss is a loss recorded on paper results from the investment. It occurs when shares prices decrease after investor purchases it, but an individual has to sell it, till the time it is not sold the amount of decrease in share price is recorded as an unrealized loss.

Other expenses and losses: Other expenses and losses are the losses which are not related to primary business operations, for example, foreign exchange losses.

(a) To determine: To determine the reporting of F Corp. under the balance sheet and income statement for December 31, 2017, related to the securities presented in the question document.

Given information: All the information related to F Corp. is presented in the question document.

To determine

(b) To determine: To determine the reporting of F Corp. under the balance sheet and income statement for December 31, 2018, related to the securities presented in the question document.

Given information: All the information related to F Corp. is presented in the question document.

Balance Sheet on December 31, 2018
Equity Investments, at fair value	$94,000
(Reported as current or noncurrent based on intent)

Income Statement for year ended December 31, 2018
Other Expenses and Losses
Loss on Sale of Investments	$1,800
Unrealized Holding Loss (see Schedule A)	38,000

To determine

(c) To determine: To determine the reporting of F Corp. under the balance sheet and income statement for December 31, 2019, related to the securities presented in the question document.

Given information: All the information related to F Corp. is presented in the question document.