Stock Trader, Inc Based on the Information Provided, Describe How Stock Trader Would

question 90

Essay

Stock Trader, Inc. began operations in 2012. Stock Trader has acquired a number of equity investments during 2012. None have been sold. Stock Trader exerts no influence over any of its investments each of which represents a small percentage of the investee. An analysis of Stock Trader's investment portfolios shows the following totals at December 31, 2012:


$\begin{array}{ll}&&\text { Available-for-Sale }\\&\underline{\text { Trading Securities } }& \underline{\text { Securities } }\\ \text {Available-for-Sale}&\$ 49,000 & \$ 65,000 \\\text {Aggregate Cost}& \$ 39,000 & \$ 90,000 \\\\\text { Dividends received from investments }& \$ 5,000 & \$ 9,000\end{array}$
Based on the information provided, describe how Stock Trader would present this information in its financial statements. You should discuss what amounts would appear in each financial statement.

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Definitions:

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The ability to understand and internalize the meaning of information, such as spoken or written language, symbols, or concepts.

Language

A method of conveying messages specific to a certain community or nation, which includes the structured and traditional use of words.

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The sensory processes that allow organisms to see and smell, crucial for navigation, survival, and interaction with the environment.

Sound

Vibrations that travel through the air or another medium and can be heard when they reach a person's or animal's ear, interpreted as acoustic signals by the brain.