Stoll Co.’s long-term available-for-sale portfolio at December31, 2016, consists of the following. Available-for-Sale SecuritiesCost Fair Value 70,000 shares of Company A common stock $ 1,046,600$ 915,000 42,000 shares of Company B common stock 352,750 342,00041,000 shares of Company C common stock 1,385,000 1,332,875 Stollenters into the following long-term investment transactions duringyear 2017. Jan. 29 Sold 21,000 shares of Company B common stock for$175,375 less a brokerage fee of $3,200. Apr. 17 Purchased 22,000shares of Company W common stock for $480,000 plus a brokerage feeof $3,800. The shares represent a 30% ownership in Company W. July6 Purchased 15,000 shares of Company X common stock for $261,625plus a brokerage fee of $3,800. The shares represent a 10%ownership in Company X. Aug. 22 Purchased 100,000 shares of CompanyY common stock for $660,000 plus a brokerage fee of $8,600. Theshares represent a 51% ownership in Company Y. Nov. 13 Purchased19,000 shares of Company Z common stock for $525,300 plus abrokerage fee of $6,600. The shares represent a 5% ownership inCompany Z. Dec. 9 Sold 70,000 shares of Company A common stock for$1,031,000 less a brokerage fee of $4,100. The fair values of itsinvestments at December 31, 2017, are: B, $171,250; C, $1,229,125;W, $391,000; X, $244,750; Y, $1,071,000; and Z, 566,100. Required:1. Determine the amount Stoll should report on its December 31,2017, balance sheet for its long-term investments inavailable-for-sale securities. 2. Prepare any necessary December31, 2017, adjusting entry to record the fair value adjustment forthe long-term investments in available-for-sale securities.
