Presented below is information related to the purchases of common stock by Indigo Company during 2020.     Cost (at purchase date)   Fair Value (at December 31) Investment in Arroyo Company stock   $ 90,000   $ 69,000 Investment in Lee Corporation stock   229,000   279,000 Investment in Woods Inc. stock   188,000   199,000     Total   $ 507,000   $ 547,000

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Presented below is information related to the purchases of common stock by Indigo Company during 2020.

   
Cost
(at purchase date)
 
Fair Value
(at December 31)
Investment in Arroyo Company stock   $ 90,000   $ 69,000
Investment in Lee Corporation stock   229,000   279,000
Investment in Woods Inc. stock   188,000   199,000
    Total   $ 507,000   $ 547,000

(Assume a zero balance for any Fair Value Adjustment account.)

(a)   What entry would Indigo make at December 31, 2020, to record the investment in Arroyo Company stock if it chooses to report this security using the fair value option?
(b)   What entry would Indigo make at December 31, 2020, to record the investments in the Lee and Woods corporations, assuming that Indigo did not select the fair value option for these investments?

(Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

No.
Account Titles and Explanation
Debit
Credit
(a)
 
 
 
 
 
 
 
(b)
 
 
 
 
 
 
 
 

 

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