Fair value journal entries, trading investments Storm, Inc. purchased the following trading securities during 20Y9, its first year of operations:

Name Number of Shares Cost Dust Devil, Inc. 1,900 $ 81,700 Gale Co. 850 68,000 Whirlwind Co. 2,850 114,000 Total $263,700 The market price per share for the trading security portfolio on December 31, 20Y9, was as follows:

Market Price per Share, Dec. 31, 20Y9 Dust Devil, Inc. $40 Gale Co. 75 Whirlwind Co. 42

a. Journalize the entry to adjust the trading security portfolio to fair value on December 31, 20Y9.

b. Describe the income statement impact from the December 31, 20Y9, journal entry.

AppendixLO1