On February 15,Seacroft buys 7,000 shares of Kebo common stock at $28.53 per share plus a brokerage fee of $400.The stock is classified as available-for-sale securities.On March 15,Kebo declares a dividend of $1.15 per share payable to stockholders of record on April 15.Seacroft received the dividend on April 15 and ultimately sells half of the Kebo stock on November 17 of the current year for $29.30 per share less a brokerage fee of $250.The fair value of the remaining shares is $29.50 per share.The amount that Seacroft should report on its year-end December 31 income statement related to the investment in Kebo is:

Question

Quizplus · Accepted Answer

(7,000 * $1.15 = $8,050) + [(3,500 x $29.30) - $250] - ($200,110 x 1/2) =
$8,050 + $2,245 = $10,295

On February 15,Seacroft Buys 7,000 Shares of Kebo Common Stock