Problem 1

On December 31, 2018 a company had the following securities in its minority passive equity investment portfolio:

Prior to making the year-end fair value adjustment entry, the Fair Value Adjustment Equity Investments account had a credit balance of $4,320.

The market value of the securities in the companys minority passive equity investment portfolio on December 31, 2018 are as follows:

On June 30, 2019, the company received dividends on its investment in Equity2 securities totaling $3,000.

On September 28, 2019, the company sold of its Equity1 shares for $28,300.

The market value of these securities in the companys minority passive equity investment portfolio on December 31, 2019 are as follows:

1. The unrealized gain or loss recognized on December 31, 2018 for the companys minority passive equity investment portfolio.

Security Equity1 Equity2 Equity3 Cost $50,000 24,000 63,700 Security Equity1 Equity2 Equity3 Market Value $48,000 27,200 66,800 Security Equity1 Equity2 Equity3 Market Value $29,200 24,200 70,500