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A company purchases 5 , 0 0 0 shares of another company's stock as a long - term investment for $ 1 0 0 ,

A company purchases 5,000 shares of another company's stock as a long-term investment for $100,000. At year-end, the stock's fair value has declined to $85,000. The company classifies this investment as available-for-sale. Prepare the journal entries necessary to record the initial purchase and the subsequent fair value adjustment.
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