Question
Exercise 12-17 (Static) Equity investments; fair value through net income [LO12-5] Skip to question [The following information applies to the questions displayed below.] The accounting
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.)
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