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As a long-term investment at the beginning of the 2018 fiscal year, Florists International purchased 30% of Nursery Supplies Incs 8 million shares for $56 million. The fair value and book value of the shares were the same at that time. The company realizes that this investment typically would be accounted for under the equity method, but instead chooses the fair value option. During the year Nursery Supplies earned net income of $40 million and distributed cash dividends of $1.25 per share. At the end of the year, the fair value of the shares is $52 million

Journal entry worksheet 2 3 4 Record any necessary entry to adjust the fair value on December 31, 2018. Note: Enter debits before credits Event General Journal Debit Credit 4 Record entry Clear entry View general journal

Hello. I need help on the following problem. I have tried already putting "no adjustment required" but it still comes out incorrect. Thank you.

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No entry is required to be recorded to adjust the investment, for decreases in fair value of the shares from $56 million to $52 million

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