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16 November, 07:23

Bowie Glass purchased 17,000 shares of Lenz Framing common stock for $382,500 in 2016. When they created their December 31, 2016 balance sheet, the shares had a fair value of $373,150. On July 3, 2017, Bowie Glass sold all of the Lenz Framing stock for $27.25 per share less $15,000 in brokerage commission. In their 2017 financial statements, Bowie Glass should report

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  1. 16 November, 08:23
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    It should recognize a gain for 75,100 on his investment.

    Explanation:

    27.25 x 1,700 = 463,250

    commision (15,000)

    net realizable value 448,250

    book value (373,150)

    gain on investment 75,100

    Cash 448,250

    Lenz Framing Investment 373,150

    Gain on investment 75,100
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