Problem 15-5A Long-term investment transactions; unrealized andrealized gains and losses LO C2, P3, P4 [The following informationapplies to the questions displayed below.] Stoll Co.’s long-termavailable-for-sale portfolio at December 31, 2016, consists of thefollowing. Available-for-Sale Securities Cost Fair Value 65,000shares of Company A common stock $ 1,045,600 $ 930,000 40,000shares of Company B common stock 350,750 340,000 40,000 shares ofCompany C common stock 1,381,500 1,329,875 Stoll enters into thefollowing long-term investment transactions during year 2017. Jan.29 Sold 20,000 shares of Company B common stock for $174,375 less abrokerage fee of $3,100. Apr. 17 Purchased 22,000 shares of CompanyW common stock for $475,000 plus a brokerage fee of $3,700. Theshares represent a 30% ownership in Company W. July 6 Purchased14,000 shares of Company X common stock for $261,125 plus abrokerage fee of $3,700. The shares represent a 12% ownership inCompany X. Aug. 22 Purchased 100,000 shares of Company Y commonstock for $650,000 plus a brokerage fee of $8,500. The sharesrepresent a 51% ownership in Company Y. Nov. 13 Purchased 18,000shares of Company Z common stock for $525,800 plus a brokerage feeof $6,500. The shares represent a 5% ownership in Company Z. Dec. 9Sold 65,000 shares of Company A common stock for $1,030,500 less abrokerage fee of $4,100. The fair values of its investments atDecember 31, 2017, are: B, $170,750; C, $1,228,625; W, $390,500; X,$244,250; Y, $1,070,500; and Z, 565,600. Problem 15-5A Part 3 3.What amount of gains or losses on transactions relating tolong-term investments in available-for-sale securities should Stollreport on its December 31, 2017, income statement?
