BRIEF EXERCISE 17-5

(a) Equity Investments 13,200

Cash 13,200

(b) Cash 1,300

Dividend Revenue (400 X $3.25) 1,300

(c) Fair Value Adjustment 600

Unrealized Holding Gain or Loss—Income

[(400 X $34.50) – $13,200] 600

LO: 2, Bloom: AP, Difficulty: Moderate, Time: 3-5, AACSB: Analytic, AICPA BB: Critical Thinking, AICPA FC:
Reporting, AICPA PC: Problem Solving

BRIEF EXERCISE 17-6

(a) Equity Investments 13,200

Cash 13,200

(b) Cash 1,300

Dividend Revenue (400 X $3.25) 1,300

(c) No adjustment to fair value is reported because the equity security is nonmarketable.

LO: 2, Bloom: AP, Difficulty: Simple, Time: 3-5, AACSB: Analytic, AICPA BB: Critical Thinking, AICPA FC:
Reporting, AICPA PC: Problem Solving
BRIEF EXERCISE 17-7

Equity Investments 300,000

Cash 300,000

Equity Investments 54,000

Investment Income (30% X $180,000) 54,000

Cash 18,000

Equity Investments (30% X $60,000) 18,000

LO: 3, Bloom: AP, Difficulty: Simple, Time: 3-5, AACSB: Analytic, AICPA BB: Critical Thinking, AICPA FC:
Reporting, AICPA PC: Problem Solving

BRIEF EXERCISE 17-8

Fair Value Adjustment

Bal. 200

500

Bal. 700*

*$4,000 − $3,300

Fair Value Adjustment 500

Unrealized Holding Gain or Loss—Income 500

LO: 2, Bloom: AP, Difficulty: Simple, Time: 3-5, AACSB: Analytic, AICPA BB: Critical Thinking, AICPA FC:
Reporting, AICPA PC: Problem Solving

BRIEF EXERCISE 17-9

(a) Other comprehensive loss for 2017 of $10.9 million.

(b) Comprehensive income for 2017: $1,234.8 million or ($1,245.7 – $10.9).

(c) Accumulated other comprehensive income: $46.3 million or ($57.2 – $10.9).

LO: 2, 4, Bloom: AP, Difficulty: Moderate, Time: 3-5, AACSB: Analytic, AICPA BB: Critical Thinking, AICPA
FC: Reporting, AICPA PC: Problem Solving

BRIEF EXERCISE 17-10

Loss on Impairment ($70,000 − $60,000) 10,000

Allowance for Loss on Debt Investment 10,000

In this case, an impairment has occurred and the individual security should be written down.