At the beginning of 2010, Ace Company had the following portfolio of investments in available-for-sale securities (common stock):

During 2010 the following transactions occurred:
May 3 Purchased C securities (common stock) for $13,500
July 16 Sold all of the A securities for $25,000
Dec. 31 Received dividends of $800 on the B and C securities, for which the following information was available:
12/31/10
Security Fair Value
B ....... $32,000
C ....... 15,500

Required
1. Prepare journal entries to record the preceding information.
2. What is the balance in the Unrealized Increase/Decrease account on December 31,2010?

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12/31/09 Fair Value $25,000 29,000 $54,000 Security Cost $20,000 30,000 $50,000 Totals