Answered
At December 31 2017 the available-for-sale securities for Allison Inc. are as follows. Security ‾ Cost ‾ Fair Value ‾X$27,500$24,000Y 12,50013,000Z23,000‾18,000‾$63,000‾$55,000‾\begin{array}{lrr} \underline{\text { Security }} & \underline{ \text { Cost }}& \underline{ \text { Fair Value }}\\\text {X} & \$ 27,500 & \$ 24,000 \\\text {Y }& 12,500 & 13,000 \\\text {Z} & \underline{23,000} & \underline{18,000} \\&\underline{ \$ 63,000} &\underline{ \$ 55,000}\end{array} Security XY Z Cost $27,50012,50023,000$63,000 Fair Value $24,00013,00018,000$55,000 Instructions
(a) Prepare the adjusting entry at December 31 2017 to report the securities at fair value.
(b) Show the balance sheet and income statement presentation at December 31 2017 after adjustment to fair value. The securities are considered to be a long-term investment.
On Jun 30, 2024