CHAPTER 12 (8.)

The accounting records of Jamaican Importers, Inc., at January 1, 2018, included the following:

Assets:
Investment in IBM common shares	$	1,395,000
Less: Fair value adjustment		(150,000	)
	$	1,245,000

No changes occurred during 2018 in the investment portfolio. Required: Prepare appropriate adjusting entry(s) at December 31, 2018, assuming the fair value of the IBM common shares was:

1. $1,187,000
2. $1,287,000
3. $1,425,000

I ONLY GOT #3. WRONG. BELOW IS THE PICTURE OF THE ANSWER I GOT WRONG.

Answer is complete but not entirely correct. No Transactions Credit General Journal Unrealized holding lossNI Fair value adjustment Debit 58,000 58,000 42,000 Fair value adjustment Unrealized holding gainNI 42,000 150,000 Fair value adjustment Unrealized holding gainNI 150,000 $