Problem - On January 10, year 1, Wayne, Inc., purchased 5,000 shares of Jason Corporation's common stock at $60 per share. The purchase is a long-term investment and is less than 20% of Jason's outstanding shares. This investment is appropriately reflected in Wayne's balance sheet in an available-for-sale securities portfolio at December 31, year 1. The market value of Wayne's investment in Jason's common stock was as follows:
|
Market Value
|
|
Date
|
Per share
|
Total
|
|
December 15, year 1
|
$47
|
$235,000
|
|
December 31, year 1
|
$46
|
$230,000
|
On December 15, year 1, Wayne determined that there had been a temporary decline in the market value. What amount should Wayne record as a loss in its income statement for the year ended December 31, year 1?
$70,000
$0
$5,000
$65,000