## Related questions with answers

JED Capital Inc. makes investments in trading securities. Selected income statement items for the years ended December 31, 2014 and 2015, plus selected items from comparative balance sheets, are as follows:

$\begin{array}{c} \textbf{JED Capital Inc.}\\ \textbf{Selected Income Statement Items}\\ \textbf{For the Years Ended December 31, 2014 and 2015}\\ \end{array}$

$\begin{array}{lcc} \hline &\textbf{2014}&\textbf{2015}\\ \hline \text{Operating income}&&\\ \text{Unrealized gain (loss)}&&\$(11,000)\\ \text{Net income}&&28,000\\ \end{array}$

$\begin{array}{c} \textbf{JED Capital Inc.}\\ \textbf{Selected Balance Sheet Items}\\ \textbf{For the Years Ended December 31, 2013, 2014 and 2015}\\ \end{array}$

$\begin{array}{lccc} \hline & \textbf { Dec. 31, 2013 } & \textbf { Dec. 31, 2014 } & \textbf { Dec. 31, 2015 } \\ \hline \text { Trading investments, at cost } & \$ 144,000 & \$ 168,000 & \$ 205,000 \\ \text { Valuation allowance for trading investments } & (12,000) & 17,000 & g. \\ \text { Trading investments, at fair value } & & &\\ \text { Retained earnings } & \$ 210,000 & \$ 245,000 & \end{array}$

There were no dividends. Determine the missing lettered items.

Solution

VerifiedIn this exercise, we are asked to determine the Valuation allowance for trading investments for December 31, 2015.

## Create an account to view solutions

## Create an account to view solutions

## More related questions

1/4

1/7