5M Corporation completed the following transactions, in the order given, relative to the portfolio of stocks held as equity investments measured at FVNI. Year 1 1. Purchased 150 shares of Starbux Corporation common stock (par value $1) at $50 per share plus a brokerage commission of 4% and transfer costs of $50 on August 1, Year 1. 2. Purchased 300 shares of Kolgate Corporation Class A common stock (par value $0.50) at $35 per share plus transfer costs of $75 on September 15, Year 1. Year 2 1. Purchased 275 shares of Starbux Corporation common stock at $55 per share plus a brokerage commission of 4% and transfer costs of $60 on February 1, Year 2. 2. Received declared cash dividends of $2.00 per share on the Kolgate Corporation Class A common stock on June 30, Year 2. 3. Sold 75 shares of Starbux Corporation common stock at $58 per share on August 15, Year 2.

Year-End Stock Prices

Starbux, common stock Year 1: $48 Year 2: $60

Kolgate, Class A common stockYear 1: $38 Year 2: $50

f. Provide the entry for 5M Corporation on December 31, Year 2, to adjust the Fair Value Adjustment account.