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The accounting records of Jamaican Importers Inc. at January 1, 2013, included the following: Assets: Investment in IBM common shares $ 1,695,000 Less: Fair value
| The accounting records of Jamaican Importers Inc. at January 1, 2013, included the following: |
| Assets: | |||
| Investment in IBM common shares | $ | 1,695,000 | |
| Less: Fair value adjustment | (180,000 | ) | |
| $ | 1,515,000 | ||
| Shareholders' Equity: | |||
| Accumulated unrealized holding gains and losses | |||
| $ | 180,000 | ||
| No changes occurred during 2013 in the investment portfolio. |
| Required: |
| Prepare appropriate adjusting entry(s) at December 31, 2013, assuming the fair value of the IBM common shares was: |
| 1. | $1,267,000 |
| 2. | $1,570,000 |
| 3. | $1,730,000 |
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Options Futures And Other Derivatives
Authors: John Hull
9th Global Edition
1292212896, 9781292212890
