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Whispering Winds Technologies Inc. held a portfolio of shares and bonds that it accounted for using the fair value through other comprehensive income model at

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Whispering Winds Technologies Inc. held a portfolio of shares and bonds that it accounted for using the fair value through other comprehensive income model at December 31, 2020. This was the first year that Whispering Winds had purchased investments. In part due to Whispering Winds's inexperience, by December 31, 2020, the market value of the portfolio had dropped $29,200 below its original cost. Whispering Winds recorded the necessary adjustments at December 31, 2020 and was determined to hold the securities until the unrealized loss of 2020 could be recovered. By December 31, 2021. Whispering Winds's goals of recovery had been realized and the original portfolio of shares and bonds had a fair market value $7.300 higher than the original purchase costs. Whispering Winds's income tax rate is 30% for all years. Assume that any gains that will ultimately be realized on the sale of the shares and bonds are taxable as ordinary income when they are realized. Whispering Winds applies IFRS. Prepare the journal entries at December 31, 2020 to accrue the unrealized loss on Whispering Winds's securities and the related income tax. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts.) Date Account Titles and Explanation Debit Credit December 31, 2020 (To record fair value adjustment) December 31, 2020 (To record deferred taxes on fair value adjustment)

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