Metro Corporation Reported the Following Transactions Relating to Its Held

question 107

Essay

Metro Corporation reported the following transactions relating to its held for trading investments:Jan 1 Purchased 1,000 shares of London Ltd. shares for $64,000 cash.Jun 1 Received cash dividends of $5 per share on the London shares.Sep 15 Sold 250 London shares for $15,500.Dec 31 The fair value of the London shares was $49,250.Instructions
a. Record the above transactions and events.
b. Indicate where any revenues and gains or losses (realized or unrealized) would appear in the financial statements.

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Definitions:

Ideally

In a perfect or most suitable way, often used to describe an optimal condition or scenario.

Very Elastic

A description of a demand or supply curve which shows that the quantity demanded or supplied changes significantly as price changes.

Unit Elastic

A situation in which a one percent change in price causes an equal percentage change in quantity demanded or supplied.

Very Inelastic

Describes a situation where the demand or supply for a product is barely affected by changes in the price.