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Balance Sheet Presentation, Trading Investments The income statement for Delta-tec, Inc., for the year ended December 31, Yea

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a.

Particulars Amount Amount
Retained earnings, December 31, year 1 $604000
Net Income , Year 2 124000
Less: Dividend paid out 35000
Earnings for year 2 89000
Retained earnings, December 31, year 2 $693,000

b.

Balance sheet Disclosure for Trading Investment
For December 31, Year 2
Current Assets
Trading investment (at cost) (164000+45000) $209,000
+ Valuation allowance for Trading investment (34,000)
Trading investment (at fair value) $175,000
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