Using the data presented in BE16.9, assume that the investment in Ecotown’s common shares is sold on January 15, 2022, for $690,000. Prepare the journal entry to record the sale of the investment.

BE16.9

On April 1, 2021, Perfect Plastics Company purchased 40,000 common shares in Ecotown Ltd. for $15 per share. Management has designated the investment as FVTOCI. On December 5, Ecotown paid dividends of $0.10 per share and its shares were trading at $17 per share on December 31. Prepare the required entries to record the purchase, dividends, and year-end adjusting journal entry (if any) for this investment.