Question

Balance Sheet Presentation, Trading Investments

The income statement for Delta-tec, Inc., for the year ended December 31, Year 2, was as follows:

Delta-tec, Inc.
Income Statement (selected items)
For the Year Ended December 31, Year 2
Income from operations	$163,000
Gain on sale of investments	11,000
Unrealized loss on trading investments	(36,000)
Net income	$138,000

The balance sheet dated December 31, Year 1, showed a Retained Earnings balance of $672,000. During Year 2, the company purchased trading investments for the first time at a cost of $182,000. In addition, trading investments with a cost of $50,000 were sold at a gain during Year 2. The company paid $39,000 in dividends during Year 2.

a. Determine the December 31, Year 2, Retained Earnings balance.
$

b. Provide the December 31, Year 2, balance sheet disclosure for Trading Investments.

Delta-tec, Inc.
Balance Sheet Disclosure for Trading Investments
For December 31, Year 2
	$
	$

Answer 1