Exercise 12-17 (Static) Equity investments; fair value through net income [LO12-5]

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[The following information applies to the questions displayed below.] The accounting records of Jamaican Importers, Inc., at January 1, 2021, included the following:

Assets:
Investment in IBM common shares	$	1,345,000
Less: Fair value adjustment		(145,000	)
	$	1,200,000

No changes occurred during 2021 in the investment portfolio.

Exercise 12-17 (Static) Part 2

2. Prepare appropriate adjusting entry(s) at December 31, 2021, assuming the fair value of the IBM common shares was: $1,275,000 (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)