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