Question 15 At December 31, 2017, the available-for-sale debt portfolio forStellar, Inc. is as follows. Security | | Cost | | Fair Value | | Unrealized Gain (Loss) | A | | $158,375 | | $135,750 | | $(22,625 | ) | B | | 113,125 | | 126,700 | | 13,575 | | C | | 208,150 | | 230,775 | | 22,625 | | Total | | $479,650 | | $493,225 | | 13,575 | | Previous fair value adjustment balance—Dr. | | 3,620 | | Fair value adjustment—Dr. | | $9,955 | | On January 20, 2018, Stellar, Inc. sold security A for $136,655.The sale proceeds are net of brokerage fees.
StellarInc. reports net income in 2017 of $1,086,000 and in 2018 of$1,267,000. Total holding gains (including any realized holdinggain or loss) equal $362,000 in 2018. |