The Following Information Is Available for Anderson Company at December

question 55

Essay

The following information is available for Anderson Company at December 31,2016:
$\begin{array}{ll}\text { Additional paid-in capital, common } & \$ 490,000 \\\text { Common stock, } \$ 5 \text { par value, } 40,000 \text { shares issued } & 200,000 \\\text { Dividends payable } & 415,000\\\text { Long-term investment in Jacobs Company }&1,400,000\\\text { Marketable securities } & 610,000 \\\text { Retained earnings } & 242,000 \\\text { Treasury stock, common, } 8,000 \text { shares } & 176,000\end{array}$
Required:
Prepare the stockholders' equity section of a classified balance sheet at December 31,2016.Assume 400,000 shares of common stock are authorized to be issued.

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Definitions:

Market Value

The present listed price for purchasing or selling an asset or service in a market.

Fair Value Hedge

A specific hedging strategy used to mitigate the risk of changes in the fair value of an asset or liability or an unrecognized firm commitment.

Hedge Accounting

An accounting method that records the offsetting positions of a financial hedge and its underlying asset together to reduce volatility in financial statements.

Speculative Investments

Investments with a high risk of loss but also the potential for significant rewards, often characterized by high volatility.