Irving Inc.?s non-strategic investment portfolio at December 31, 2019, consisted of the following:

Irving Inc. had no other debt and equity investments at December 31, 2019, other than those shown above. During 2020, Irving engaged in the following transactions:

Required

1. Calculate the total fair value adjustment that was recorded on December 31, 2019.

2. Journalize the 2020 transactions as detailed above.

Transcribed Image Text:

Debt and Equity Investments* Fair Value Cost 50,000 Cumber Corp. common shares. 18,000 Olds Inc. common shares. 45,000 Waters Corp. common shares. $138,000 124,200 265,500 $145,000 118,900 261,000 2020 Feb. Sold 45,000 of the Cumber Corporation shares for $2.48 per share. June 27 Purchased 280,000 common shares of King Corp. for $540,000. The shares represent a 38% ownership in King Corp. 30 Received dividends of $0.45 per share from King Corp. Sold the remaining Cumber Corporation shares for $14,680. 7 Purchased a 15% ownership in Amber Corp. by acquiring 45,000 common shares at $14.50 per share. Irving Inc. plans to sell these shares in six to nine months. 30 July Aug. Sold 25,000 shares of Waters Corp. for $5.40 per share. 31 Dec. King Corp. announced a loss of $40,000 for the year.