On July 1,2019,Carter Company purchased equity securities as follows: Dark Corporation common stock (par $1)10,000 shares at $25 per share.
Janin Corporation preferred stock (par $100)2,000 shares at $105 per share.
The quoted market prices per share on December 31,2019 were as follows:
Dark Corporation stock,$27 per share
Janin Corporation stock,$104 per share
Each of the investments represented 5% of the total shares outstanding.The carrying value amount of the investments at December 31,2019 should be

Question

Quizplus · Accepted Answer

The carrying value of the investments is based on the market value at December 31, 2019. For Dark Corporation, the market value is 10,000 shares x $27 = $270,000. For Janin Corporation, the market value is 2,000 shares x $104 = $208,000. The total carrying value is $270,000 + $208,000 = $478,000.

On July 1,2019,Carter Company Purchased Equity Securities as Follows: Dark