5988

During 2016, its first year of operations, Galileo Company purchased two available-for-sale investments as follows:SecurityShares PurchasedCostHawking Inc.890$47,060Pavlov Co.1,83035,880Assume that as of December 31, 2016, the Hawking Inc. stock had a market value of $54 per share, and the Pavlov Co. stock had a market value of $22 per share. Galileo Company had net income of $303,800, and paid no dividends for the year ended December 31, 2016. All of the available-for-sale investments are classified as current asset