In the Current Year,Logic Co

question 196

Essay

In the current year,Logic Co.purchased stock of Waterford Co.with a cost of $125,000 and a year-end fair value of $123,700.Logic also purchased 1,500 shares of Jasper Co.common stock with a cost of $25,000 and a year-end fair value of $26,100.These investments are considered stock investments with insignificant influence.Prepare the journal entry to record any necessary fair value adjustment to the stock investments as of its December 31 year-end.

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Definitions:

Return on Investment

A financial metric used to evaluate the efficiency of an investment, calculated by dividing the profit from an investment by its cost.

Marginal Analysis

An assessment method used to examine the benefits and costs of an extra unit of consumption or production.

Strategic Marketing Process

A systematic approach to planning and executing marketing strategies that align with an organization's overall objectives.

Output Report

A document or data file generated by a computer or a system that summarizes the outcome or results of operations or transactions.