Exercise 15-10 Multiyear fair value adjustments to available-for-sale securities LO P3

Ticker Services began operations in 2015 and maintains long-term investments in available-for-sale securities. The year-end cost and fair values for its portfolio of these investments follow.

Portfolio of Available-for-Sale Securities	Cost			Fair Value
December 31, 2015	$	380,640		$	369,221
December 31, 2016		433,930			459,966
December 31, 2017		590,145			698,142
December 31, 2018		891,119			793,096

Prepare journal entries to record each year-end fair value adjustment for these securities.

• 1
  Record the year-end adjusting entry for the securities portfolio as of December 31, 2015.
• 2
  Record the year-end adjusting entry for the securities portfolio as of December 31, 2016.
• 3
  Record the year-end adjusting entry for the securities portfolio as of December 31, 2017.
• 4
  Record the year-end adjusting entry for the securities portfolio as of December 31, 2018.

Calculation adjustment required to fair value adjustment.

12/31/15	Existing balance in Fair Value Adjustment-AFS (LT)
	Required balance in Fair Value Adjustment-AFS (LT)
	Adjustment required to Fair Value Adjustment-AFS (LT)
12/31/16	Existing balance in Fair Value Adjustment-AFS (LT)		0
	Required balance in Fair Value Adjustment-AFS (LT)
	Adjustment required to Fair Value Adjustment-AFS (LT)
12/31/17	Existing balance in Fair Value Adjustment-AFS (LT)		0
	Required balance in Fair Value Adjustment-AFS (LT)
	Adjustment required to Fair Value Adjustment-AFS (LT)
12/31/18	Existing balance in Fair Value Adjustment-AFS (LT)		0
	Required balance in Fair Value Adjustment-AFS (LT)
	Adjustment required to Fair Value Adjustment-AFS (LT)