On December $31,2021,$ the end of its first year of operations, Crane Associates owned the following securities that are held as long$-$

term investments.

Common Stock

C Co$.$

D Co$.$

E Co$.$

Shares

$910$

$5,220$

$1,157$

Cost

$$40,040$

$34,974$

$25,454$

On this date, the total fair value of the securities was equal to its cost. The securities are not held for influence or control over the

investees. In $2022,$ the following transactions occurred.

Received $$2\mathrm{.}00$ per share semiannual cash dividend on D Co$.$ common stock.

Received $$0\mathrm{.}50$ per share cash dividend on C Co$.$ common stock.

Sold $900$ shares of D Co$.$ common stock for cash at $$9$ per share.

Sold $310$ shares of C Co$.$ common stock for cash at $$48$ per share.

Received $$1$ per share cash dividend on E Co$.$ common stock.

Received $$0\mathrm{.}50$ per share cash dividend on C Co$.$ common stock.

Received $$2\mathrm{.}10$ per share semiannual cash dividend on D Co$.$ common stock.

July

Aug.

Sept.

Oct.

Nov.

Dec.

$1$

$1$

$1$

$1$

$1$

$15$

$31$

At December $31,$ the fair values per share of the common stocks were C Co$.$ $$43,$ D Co$.$$$6\mathrm{.}50,$ and E Co$.$$$26.$These investments

should be classified as long$-$term.Your answer is partially correct.

Prepare the adjusting entry at December $31,2022,$ to show the securities at fair value. Crane has less than a $20\%$ ownership

interest in all these common stocks $($C Co$.,$ D Co$.,$ and E Co$.).($Credit account titles are automatically indented when the amount is

entered. Do not indent manually. If no entry is required, select $"$No Entry" for the account titles and enter $0$ for the amounts.$)$

Date

Account Titles and Explanation

Debit

Credit

Dec. $31$

Fair Value Adjustment$-$Stock

Unrealized Gain or Loss$-$Income

eTextbook and Media

List of Accounts

Attempts: $2$ of $3$ used