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Missing Statement Items, Trading Investments Lydell Capital, Inc., makes investments in trading securities. Selected income statement...

Missing Statement Items, Trading Investments

Lydell Capital, Inc., makes investments in trading securities. Selected income statement items for the years ended December 31, 2016 and 2017, plus selected items from comparative balance sheets, are shown in the income statement and balance sheet below:

There were no dividends.

Determine the missing items.

Lydell Capital, Inc.
Selected Income Statement Items
For the Years Ended December 31, 2016 and 2017
2016 2017
Operating Income $ $
Unrealized Gain (Loss) (2600)
Net Income $ $18,200
Lydell Capital, Inc.
Selected Balance Sheet Items
December 31, 2015, 2016, and 2017
Dec. 31, 2015 Dec. 31, 2016 Dec. 31, 2017
Trading Investments, at Cost $160000 $189800 $223700
Valuation Allowance for Trading Investments (7800) 11700
Trading Investments, at Fair Value
Retained Earnings $188600 $249500 $
Business   Accounting   
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Answer #1
Selected Income statement items
2016 2017
Operating Income 49200 [60900-11700] 20800    [18200+2600]
Unrealized Gain (Loss) 11700    [from balancesheet ] (2600)
Net Income 60900 18200

**Net Income for 2016 =RE at 2016-RE at 2015

          = 249500-188600

               = 60900

Valuation Allowance for Trading Investments

Selected Balance sheet items
2015 2016 2017
Trading Investments, at Cost 160000 189800 223700
Valuation Allowance for Trading Investments (7800) 11700 (2600)
Trading Investments, at Fair Value 160000-7800=152200 189800+11700=201500 221100    [223700-2600]
Retained Earnings 188600 249500 249500+18200 net Income =267700
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