The accounting records of Jamaican Importers, Inc., at January 1, 2018, included the following:

Assets:
Investment in IBM common shares	$ 1,345,000
Less: Fair value adjustment	(145,000)
	$ 1,200,000
Shareholders Equity:
Accumulated unrealized holding gains and losses	$ 145,000

No changes occurred during 2018 in the investment portfolio.

Required:

Prepare appropriate adjusting entry(s) at December 31, 2018, assuming the fair value of the IBM common shares was:

1) $1,175,000

2) $1,275,000

3) $1,375,000