Dauphinee DL Corp. plans to purchase $124,000$ shares of Santos Technology Ltd$.,$ a publicly traded company. Dauphinee has signed a

contract to acquire the shares from Holding Co$.$ in $90$ days, after certain approvals are obtained; these approvals are routine but time

consuming. The agreed$-$upon price per share is $$23\mathrm{.}50,$ which is the fair value of the shares on the day the contract

Santos shares have traded between $$5$ and $$25$ over the last year; the industry has been volatile. Sixty days after signing this

agreement, it is Dauphinee's year$-$end, and Santos shares are trading for $$32\mathrm{.}50.$ At the time the contract matured, and the shares are

purchased; the shares are trading for $$15\mathrm{.}50.$

Required:

This part of the question is not part of your Connect assignment.

This part of the question is not part of your Connect assignment.

Prepare journal entries to record the inception of the contract, the change in its fair value at year$-$end, and its maturity. $($If no entry is

required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field.$)$