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Please solve the problem step-by-step. I put the answer below if it helps Ticker Services began operations in Year 1 and holds long-term investments in
Please solve the problem step-by-step. I put the answer below if it helps
Ticker Services began operations in Year 1 and holds long-term investments in available-for-sale debt Exercise 15-7 securities. The year-end costs and fair values for its portfolio of these investments follow. Prepare journal Multiyear fair value entries to record each year-end fair value adjustment for these securities. adjustments to available- for-sale debt securities P3 Exercise 15-7 ( 30 minutes) Year 1 Dec. 31 Fair Value Adjustment-AFS $2,000 Unrealized Gain-Equity $2,000 Record fair value of LTAFS portfolio ($15,000$13,000). Year 2 Dec. 31 Fair Value Adjustment-AFS $3,000 Unrealized Gain-Equity $3,000 Record fair value of LT AFS portfolio. * $25,000$20,000=$5,000 net gain ($2,000 prior gain +$3,000 current period gain). Year 3 Dec. 31 Fair Value Adjustment-AFS* $1,000 Unrealized Gain-Equity $1,000 Record fair value of LT AFS portfolio. * $29,000$23,000=$6,000 net gain ($5,000 prior gain +$1,000 current period gain). Exercise 15-7 (30 minutes) Year 4 Dec. 31 Unrealized Gain-Equity Fair Value Adjustment-AFS $3,500 Record fair value of LT AFS portfolio. * $19,000$16,500=$2,500 net gain ( $6,000 prior gain $3,500 current gain reversal)Step by Step Solution
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