Spencer Inc. had the following transactions:

Aug 1	Purchased a trading investment for $1,100 cash.
Dec 15	Received $90 of cash dividends from the trading investment.
Dec 31	Made year-end adjustment to revalue the trading investment (market price of investment on December 31 = $1,500).

a. Will Spencer recognize a gain or loss on the investment this year? Is the gain/loss realized or unrealized? Why?

b. Give Spencers journal entries for each of these transactions.

c. What will appear on Spencers Income Statement for the year, as a result of this trading investment? d. On January 15, Spencer sold the trading investment for $1,300 cash.

e. Give Spencers journal entry to record this transaction. Will Spencer recognize a gain or loss on the sale? Is the gain/loss realized or unrealized? Why?