The Activity from the Long-Term Investments Account for Rice Corporation

question 75

Essay

The activity from the Long-Term Investments account for Rice Corporation appears below.In addition,the income statement shows a loss on the sale of investments of $16,000.
Lone-Term Investments
$\begin{array}{lr}\text { Beginning balance, } 2009 & \$ 2,000 \\\text { Purchases } & 139,000 \\\text { Sales } & (101,000)\\\text { Ending balance, } 2009&\$130,000\end{array}$ Based on the information given,compute the amounts to be shown and indicate how they would appear on the statement of cash flows.Assume that the indirect method is being used and that the investments were purchased for cash.

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Definitions:

Fair Market Value

The price at which an asset would trade in a competitive auction setting, reflecting the asset's worth under normal market conditions.

Corporate Value

Refers to the worth or value of a company, often measured in terms of its market capitalization, revenue, profitability, and other financial metrics.

Upholstery Supplies

Materials and tools used for covering furniture with fabric or leather to restore or upgrade its appearance.

Dairy Products

Foods or beverages that are produced from or contain the milk of mammals, such as cheese, milk, and yogurt.