At the beginning of 2010, Ace Company had the following portfolio of investments in available for sale securities (common stock):
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During 2010 the following transactions occurred:
May 3 Purchased C securities (common stock) for $13,500
July 16 Sold all of the A securities for $25,000
Dec. 31 Received dividends of $800 on the B and C securities, for which the following information was available:
12/31/10Security Fair ValueB ....... $32,000C ....... 15,500
Required:
1. Prepare journal entries to record the preceding information.
2. What is the balance in the Unrealized Increase/Decrease account on December 31,2010?