Fair Value Method}

On January 1, 2018, Reduction Products Inc. acquired 1,500 common shares of Tupper Corp. for \(\$ 24,000\). On that date, Tupper had 10,000 common shares outstanding. On October 1, 2018,


Tupper declared and paid a cash dividend of \(\$ 2\) per share. On November 13, 2018. Reduction sold 300 shares of Tupper for \(\$ 5,000\). Tupper reported 2018 net income of \(\$ 36,000\). Tupper's fair market value is \(\$ 15\) per share at December 31, 2018. This is Reduction's only investment and they plan on disposing of the shares in Tupper in the next year.

\section*{Required:}

1. Prepare Reduction's journal entries to record the transactions related to its investment in Tupper.

2. Give the title and amount of each item (except cash) on the December 31. 2018, statement of financial position related to this investment. Name the statement of financial position section in which each item appears.

\section*{Exercise