During the First Year of Operations, Makala Company Purchased Two

question 33

Essay

During the first year of operations, Makala Company purchased two trading investments as follows: Assume that as of December 31, the Oceanna Company stock had a market value of $49 per share and Rockledge, Inc. stock had a market value of $20 per share. Makala had 10,000 shares of no-par stock outstanding that was issued for $150,000. For the year ending December 31, Makala had net income of $105,000. No dividends were paid.​
(a)Prepare the current assets section of the balance sheet presentation for the trading securities as of December 31.(b)Explain how the gain or loss would be reported on the income statement.​

---

Definitions:

Disruptive Mood Dysregulation Disorder

A childhood condition of extreme irritability, anger, and frequent, intense temper outbursts.

Suicidal Urges

Strong inclinations or compulsions towards taking one's own life, often stemming from mental health issues or distressing life circumstances.

Need to Belong

A fundamental human motivation to form and maintain strong, stable interpersonal relationships.

Pessimistic Explanatory Style

A tendency to consistently interpret and explain negative events as internal (due to one's own fault), stable (lasting over time), and global (affecting many areas of life).