The Cost and Fair Value of the Trading Securities Held

question 112

Essay

The cost and fair value of the trading securities held by AdBrand Company as of December 31, 2012 are as follows:
Required:
(1) Complete the table above to find the total cost and fair value for the company's trading securities portfolio.
(2) Calculate and record the required December 31, 2012 adjustment.
(3) Explain how the adjustment from step (2) is reported on AdBrand's 2012 financial statements.

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Definitions:

Direct Approach

A communication style that involves straightforwardly and clearly expressing thoughts or demands without unnecessary detail or diversion.

Social Media Environment

Pertains to the platforms and context in which social interactions, content sharing, and communication occur online.

Rumours

Unverified pieces of information or stories shared among people, not necessarily based on fact.

Negative Information

Information that portrays drawbacks, disadvantages, or adverse outcomes related to a subject or situation.