Available-for-sale equity securities.

During the course of your examination of the financial statements of Doppler Corporation for the year ended December 31, 2010, you found a new account, "Investments." Your examination revealed that during 2010, Doppler began a program of investments, and all investment-related transactions were entered in this account. Your analysis of this account for 2010 follows:

Doppler Corporation

Analysis of Investments

For the Year Ended December 31, 2010

Date2010 Debit Credit

(a)

Harmon Company Common Stock

Feb. 14 Purchased 4,000 shares @ $55 per share. $220,000

July 26 Received 400 shares of Harmon Company common stock

as a stock dividend. (Memorandum entry in general ledger.)

Sept. 28 Sold the 400 shares of Harmon Company common stock

received July 26 @ $75 per share. $30,000

(b)

Debit Credit

Taber Inc., Common Stock

Apr. 30 Purchased 20,000 shares @ $40 per share. $800,000

Oct. 28 Received dividend of $1.20 per share. $24,000

Additional information:

1. The fair value for each security as of the 2010 date of each transaction follow:

Security Feb. 14 Apr. 30 July 26 Sept. 28 Dec. 31

Harmon Co. $55 $62 $70 $74

Taber Inc. $40 32

Doppler Corp. 25 28 30 33 35

2. All of the investments of Doppler are nominal in respect to percentage of ownership (5% or less).

3. Each investment is considered by Dopplers management to be available-for-sale.

Instructions

Prepare any necessary correcting journal entries related to investments (a) and (b).

Prepare the entry, if necessary, to record the proper valuation of the available-for-sale equity security portfolio as of December 31, 2010.