Homework Answers
Solution:
Cost of equity securities = $96,000 + $184,000 + $126,000 = $406,000
Fair value on 31.12.2018 = $94,000 + $162,000 + $136,000 = $392,000
Unrealized gain recognized in 2018 = $4,000
Unrealized gain in 2017 = $392,000 - $406,000 - $4,000 = -$18,000
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