Question
The accounting records of Jamaican Importers, Inc., at January 1, 2018, included the following: Assets: Investment in IBM common shares $ 1,595,000 Less: Fair value
The accounting records of Jamaican Importers, Inc., at January 1, 2018, included the following:
| Assets: | ||||
| Investment in IBM common shares | $ | 1,595,000 | ||
| Less: Fair value adjustment | (170,000 | ) | ||
| $ | 1,425,000 | |||
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:
- $1,235,000
- $1,510,000
- $1,610,000
1) Record the fair value adjustment assuming the fair value of the IBM common shares was $1,235,000.
2) Record the fair value adjustment assuming the fair value of the IBM common shares was $1,510,000.
3) Record the fair value adjustment assuming the fair value of the IBM common shares was $1,610,000.
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Intermediate Accounting
Authors: J. David Spiceland, James Sepe, Mark Nelson, Wayne Thomas
10th edition
1260481956, 1260310175, 978-1260481952
