Question

c. 9,100,000 d. 5,800,000 Pernt ct s,700 Ne cetret erce 49,o00,000-39, 900,00 9,1o0,0c 916c,00K 3ey03,32 0c 13. At December 31, 2018, Penny Corporation had the following equity securities that were purchased during 2018, its first year of operation: Fair Unrealized Gain (Loss) Cost Value Trading Securities: Security A $ 85,000 15,000 $100,000 $(25,000) 5,000 $120,000) $60,000 20,000 $ 80.000 Totals Available-for-Sale Securities: $ 80,000 $10,000 (10,000) $(0 $70,000 85,000 $155,000 Security Y 75,000 $155,000 Totals All market declines are considered temporary. Fair value adjustments at December 31, 2018 should be established with a corresponding charge against

The first and second photo are all part of one question.

Answer 1

Q 1) NOT CLEAR WITH MATTERS AND REQUIREMENTS
Q 16)
Answer:	d) Unrealised Holding Gain or Loss- equity (loss)	10000
	Fair Value Adjustment (available for sale)		10000
because present adjustment is for 10000, as
(Cost 80000 -4000 already done - present value 66000)
Question Last:      Answer :    a. Understate, overstate, overstate
Because Max share in net earnings is not added to investment,
dividend is taken as revenue income instead of capital income,
retained earnings goes up as net income overstated.