Rahul Presented below is information related to the purchases of common stock by Oriole Company during 2025.Cost(at purchase date)Fair Value(at December 31)Investment in Arroyo Company stock$104,000$82,000Investment in Lee Corporation stock266,000318,000Investment in Woods Inc. stock185,000194,000Total$555,000$594,000(Assume a zero balance for any Fair Value Adjustment account at the beginning of 2025.)(a)What entry would Oriole make at December 31, 2025, to record the investment in Arroyo Company stock if it chooses toreport this security using the fair value option?(b)What entry would Oriole make at December 31, 2025, to record the investments in the Lee and Woods corporations,assuming that Oriole did not select the fair value option for these investments?(List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. Ifno entry is required, select "No Entry" for the account titles and enter O for the amounts.)No. Account Titles and ExplanationDebitCredit(a)(b)

Investment means an asset purchased in expectation of earning a return on such investment in future…

Presented below is information related to the purchases of common stock by Oriole Company during 2025. Cost (at purchase date) Fair Value (at December 31) Investment in Arroyo Company stock $104,000 $82,000 Investment in Lee Corporation stock 266,000 318,000

Presented below is information related to the purchases of common stock by Oriole Company during 2025. Cost (at purchase date) Fair Value (at December 31) Investment in Arroyo Company stock $104,000 $82,000 Investment in Lee Corporation stock 266,000 318,000

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter13: Investments And Long-term Receivables

Section: Chapter Questions

Problem 21P

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