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Problem 15-4A (Algo) Recording, adjusting, and reporting stock investments with insignificant influence LO P4 Skip to question [The following information applies to the questions displayed

Problem 15-4A (Algo) Recording, adjusting, and reporting stock investments with insignificant influence LO P4

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[The following information applies to the questions displayed below.]

Rose Company had no short-term investments prior to this year. It had the following transactions this year involving short-term stock investments with insignificant influence.

April 16 Purchased 6,000 shares of Gem Company stock at $28.00 per share.
July 7 Purchased 3,000 shares of PepsiCo stock at $45.00 per share.
July 20 Purchased 1,500 shares of Xerox stock at $19.00 per share.
August 15 Received a $0.85 per share cash dividend on the Gem Company stock.
August 28 Sold 3,000 shares of Gem Company stock at $34.75 per share.
October 1 Received a $1.50 per share cash dividend on the PepsiCo shares.
December 15 Received a $1.00 per share cash dividend on the remaining Gem Company shares.
December 31 Received a $1.25 per share cash dividend on the PepsiCo shares.

The year-end fair values per share are Gem Company, $30.25; PepsiCo, $42.25; and Xerox, $16.00.

Problem 15-4A (Algo) Part 3

3. Prepare an adjusting entry to record the year-end fair value adjustment for the portfolio of short-term stock investments.

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