Answer:
See the explanation below.
Explanation:
The data in the question are merged and they are separated first before the question is answered as follows:
Security Shares Purchased Cost ($)
Hawking Inc. 750 33,375
Pavlov Co. 2,030 47,096
The answers and explanation are now as follows:
Hawking Inc. market value = $53 * 750 = $39,750
Pavlov Co. market value = $42 * 2,030 = $85,260
Total market value stock = $125,010
Total cost of stock = $33,375 + 47,096 = $80,471
Unrealized gain from stock = Market value - Cost = $125,010 - $80,471 = $44,539
Galileo Company
Balance Sheet (Selected Items)
December 31, Year 1.
Details Amount ($)
Current Assets:
Available-for-sale investments, at Cost. 80,471
Valuation allowance for available-for-sale investments 44,539
Total 125,010