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Fair value accounting for minority$-$passive equity investments

Founded on January $2,2021,$ Garvis, Inc. had the following passive investments in

equity securities at the end of $2021$ and $2022$ :

Required:

If the company recorded a $$4,000$ debit to its fair value adjustment account as its

$2022$ fair value adjustment, what must have been the unrealized gain or loss

reported at the end of $2021?$

SOLUTION:

Fair Value Adjustment $-$ trading securities