1A.Fairbanks Corporation purchased 400 shares of Sherman Inc. common stock as a trading security for $13,010. During the year, Sherman paid a cash dividend of $3.40 per share. At year-end, Sherman stock was selling for $34.80 per share. Prepare Fairbanks(a) the purchase of the investment, journal entries to record (a) the purchase of the investment, (b) the dividends received, and (c) the fair value adjustment. (Assume a zero balance in the Fair Value Adjustment account.)

1B.Fairbanks Corporation purchased 440 shares of Sherman Inc. common stock as an available-for-sale investment for $13,250. During the year, Sherman paid a cash dividend of $3.40 per share. At year-end, Sherman stock was selling for $35.00 per share.Prepare Fairbanks journal entries to record (a) the purchase of the investment, (b) the dividends received, and (c) the fair value adjustment. (Assume a zero balance in the Fair Value Adjustment account.)

1C.Fairbanks Corporation has a stock portfolio valued at $8,340 (available-for-sale). Its cost was $7,610. If the Fair Value Adjustment account has a debit balance of $277, prepare the journal entry at year-end.