On December 21, 2017, Ivanhoe Company provided you with the following information regarding its equity investments. Clemson
Question:
On December 21, 2017, Ivanhoe Company provided you with the following information regarding its equity investments.
Clemson Corp. stock$19,400$18,500$(900)Colorado Co. stock10,6009,600(1,000)Buffaloes Co. stock19,40019,990590Total of portfolio$49,400$48,090(1,310)Previous fair value adjustment balance0Fair value adjustmentCr.$(1,310)
During 2018, Colorado Company stock was sold for $10,140. The fair value of the stock on December 31, 2018, was Clemson Corp. stock$18,610; Buffaloes Co. stock$19,900. None of the equity investments result in significant influence.
(a)Prepare the adjusting journal entry needed on December 31, 2017.
(b)Prepare the journal entry to record the sale of the Colorado Co. stock during 2018
.(c)Prepare the adjusting journal entry needed on December 31, 2018.