Accounting 26th Edition by Carl Warren ,Jim Reeve ,Jonathan Duchac

Exercise 37

Balance sheet presentation of available-for-sale investments
During Year 2, Copernicus Corporation held a portfolio of available-for-sale securities having a cost of $185,000. There were no purchases or sales of investments during the year. The market values at the beginning and end of the year were $225,000 and $160,000, respectively. The net income for Year 2 was $180,000, and no dividends were paid during the year. The Stockholders' Equity section of the balance sheet was as follows on December 31, Year 1:

Prepare the Stockholders' Equity section of the balance sheet for December 31, Year 2.