On January 1, 2014, as a Long-Term Investment in Available-For-Sale

question 101

Essay

On January 1, 2014, as a long-term investment in available-for-sale securities, John Company purchased 1,000 of the 10,000 outstanding voting common shares of Wayne Corporation at $9 per share. Wayne reported 2014 net income of $30,000 and declared and paid cash dividends of $20,000. The market price of the Wayne stock at the end of 2014 was $10 per share. Calculate the carrying value of John's investment at the end of 2014.

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Definitions:

Chopsticks

Eating utensils consisting of a pair of long, thin pieces of wood or other material, commonly used in many East Asian countries.

Ought-Actual Discrepancy

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The conscious knowledge and recognition of one's own character, feelings, motives, and desires.

Emotional Reactions

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