On February 15,Jewel Company buys 7,000 shares of Marcelo Corp.common at $28.53 per share plus a brokerage fee of $400.The stock is classified as available-for-sale securities.On March 15,Marcelo Corp.declares a dividend of $1.15 per share payable to stockholders of record on April 15.Jewel Company received the dividend on April 15 and ultimately sells half of the Marcelo Corp.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 Jewel Company should report in the equity section of its year-end December 31 balance sheet for its investment in Marcelo Corp.is:

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The correct answer is D.The amount that Jewel Company should report in the equity section of its year-end December 31 balance sheet for its investment in Marcelo Corp. is $3,195. This is calculated as follows:Purchase price: 7,000 shares x $28.53 per share = $199,710Brokerage fee: $400Total cost: $200,110Dividend received: 7,000 shares x $1.15 per share = $8,050Proceeds from sale: 3,500 shares x $29.30 per share = $102,550Brokerage fee: $250Total proceeds: $102,300Gain on sale: $102,300 - $100,055 = $2,245Fair value of remaining shares: 3,500 shares x $29.50 per share = $103,250Total value of investment: $103,250 + $2,245 = $105,495Less: Cost of investment: $200,110Unrealized loss: $94,615Equity value: $105,495 - $94,615 = $3,195

On February 15,Jewel Company Buys 7,000 Shares of Marcelo Corp