Question

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	$

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