During Year 2, Copernicus Corporation held a portfolio of available-for-sale securities having a cost of $185,000. There were no purchases or sales of investments during the year. The market values at the beginning and end of the year were $225,000 and $160,000, respectively. The net income for Year 2 was $180,000, and no dividends were paid during the year. The Stockholders’ Equity section of the balance sheet was as follows on December 31, Year 1: Copernicus Corporation Stockholders’ Equity December 31, Year 1Common stock $ 50,000Paid-in capital in excess of par 250,000Retained earnings 340,000Unrealized gain on available-for-sale investments 40,000 Total $680,000Prepare the Stockholders’ Equity section of the balance sheet for December 31, Year 2.
During Year 2, Copernicus Corporation held a portfolio of available-for-sale securities having a cost of $185,000. There were no purchases or sales of investments during the year. The market values at the beginning and end of the year were $225,000 and $160,000, respectively. The net income for Year 2 was $180,000, and no dividends were paid during the year. The
December 31, Year 1:
Copernicus Corporation
Stockholders’ Equity
December 31, Year 1
Common stock $ 50,000
Paid-in capital in excess of par 250,000
Retained earnings 340,000
Unrealized gain on available-for-sale investments 40,000
Total $680,000
Prepare the Stockholders’ Equity section of the balance sheet for December 31, Year 2.
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