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Question 15
At December 31, 2017, the available-for-sale debt portfolio for
Stellar, Inc. is as follows.
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Security
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Cost
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Fair Value
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Unrealized
Gain (Loss)
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A
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$158,375
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$135,750
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$(22,625
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)
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B
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113,125
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126,700
|
|
13,575
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|
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C
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208,150
|
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230,775
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22,625
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|
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Total
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$479,650
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$493,225
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|
13,575
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|
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Previous fair value adjustment balance—Dr.
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3,620
|
|
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Fair value adjustment—Dr.
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$9,955
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On January 20, 2018, Stellar, Inc. sold security A for $136,655.
The sale proceeds are net of brokerage fees.
StellarInc. reports net income in 2017 of $1,086,000 and in 2018 of
$1,267,000. Total holding gains (including any realized holding
gain or loss) equal $362,000 in 2018.
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