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13 June, 11:08

Cullumber Corporation has these long-term investments:

Common stock of Vejas Co. (10% ownership), cost $116,090, fair value $110,090;

Common stock of Penn Inc. (30% ownership), cost $222,300, equity $212,890;

Debt investment, cost $96,430, fair value, $163,100.

Prepare the investments section of the balance sheet.

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  1. 13 June, 11:14
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    The preparation of the investments section of the balance sheet is presented below:

    Cullumber Corporation

    Investments Section

    Debt investment at fair value $163,100

    Common stock of Vejas Co at fair value $110,090

    Common stock of Penn Inc. at fair value $212,890

    Total investments $486,080

    The amount which is recorded in the investment section should be fair value, not the cost
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