Question

Pharoah Corporation has the following long-term investments. (1) Common stock of Eidman Co. (10% ownership), cost $102,500, fair value $109,500. (2) Common stock of Pickerill Inc. (30% ownership), cost $202,500, equity $252,500. (3) Debt investment, cost $92,500, fair value $152,500.Prepare the investments section of the balance sheet.

Answer 1

Step-by-step explanation:

The preparation of the investment section of the balance sheet is presented below:

Pharoah Corporation

Investment section

Fair value of investment in cost $109,500

Fair value of investment in equity $252,500

Fair value of the debt investment $152,500

Total value of investment $514,500