McCarver Investments purchased Hoffman shares as a trading security on December 18 for $103,000. 1. Suppose the Hoffman shares decreased in value to $96,000 at

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McCarver Investments purchased Hoffman shares as a trading security on December 18 for $103,000.
1. Suppose the Hoffman shares decreased in value to $96,000 at December 31. Make the McCarver journal entry to adjust the Short-Term Investment account to market value.
2. Show how McCarver would report the short-term investment on its and the unrealized gain or loss on its income statement.

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