The Cost and Fair Value of the Trading Securities Held

question 31

Essay

The cost and fair value of the trading securities held by Lindy Company as of December 31 are as follows:
​ $\begin{array}{|l|c|c|c|c|c|}\hline\text { Name } & \begin{array}{c}\text { Number of } \\\text { Shares }\end{array} & \begin{array}{c}\text { Cost } \\\text { per Share }\end{array} & \begin{array}{c}\text { Fair Value } \\\text { per Share }\end{array} & \text { Total Cost } & \text { total Fair Value } \\\hline \text { Laurie, Inc. } & 1,200 & \$ 10.50 & \$ 11.05 \\\hline \text { Scott Corp. } & 600 & 9.00 & 9.85 \\\hline \text { Stephanie Company } & 900 & 4.10 & 4.00 \\\hline \text { Timmer Company } & 1,400 & 7.35 & 6.82 \\\hline \text { Total } & & & \\\hline\end{array}$ ​
(a) Complete the table above to find the total cost and fair value for the company's trading securities portfolio.
(b) Calculate and record the required December 31 adjustment.
(c) Explain how the adjustment from step (b) is reported on Lindy's financial statements.

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Definitions:

Drinking and Drug Problems

Issues relating to the misuse or dependence on alcoholic beverages or narcotics, which can lead to physical, psychological, and social harm.

Batterers

Individuals who engage in physical, emotional, or sexual abuse against their partners.

Helplessness

A state of being unable to prevent or avoid negative outcomes, often leading to a lack of effort or motivation.

Post-Traumatic Stress Disorder

A psychiatric disorder that can occur in people who have experienced or witnessed a traumatic event, such as a natural disaster, a serious accident, a terrorist act, war/combat, or rape or who have been threatened with death, sexual violence, or serious injury.