• On 12/20/20X1, Illini Company acquires 5% of Steeler's capital stock for $40,000 as a short-term investment. The securities are classified as fair value through net income or trading securities. On 12/29/20X1, Steeler declares and pays a dividend of $40,000 to all shareholders. Steeler's net income for the year 20X1 is $100,000. On 12/31/20X1, the investment has a fair value of $38,000. On 1/1/20X2, Illini sells the securities for $42,000.

Project 1.3 Part 2 Balance Sheet

Date	Account Name		Debit	Credit
12/20/20X1	Investment - TS		[A]
		Cash		[B]
12/29/20X1	Cash		[C]
		Investment revenue		[D]
12/31/20X1	Unrealized gains/losses - NI		[E]
		Fair value adjustment		[F]
1/1/20X2	Cash		[G]
	Fair value adjustment		[H]
		Investment - TS		[I]
		Gain		[J]