Question - The accounting records of Jamaican Importers Inc. at January 1, 2011 included the following:
Assets:
Investment in IBM common shares $1,345,000
Less: Fair value adjustments -145,000
$1,200,000
Shareholders' Equity:
Accumulated unrealized holding gains and losses $145,000
No changes occurred during 2011 in the investment portfolio.
Required: Prepare appropriate adjusting entry (s) at December 31, 2011, assuming the fair value of the IBM common shares was:
$1,175,000
$1,275,000
$1,375,000