Fair Value Adjustment
Founded on January 1, 2017, Gehl Company had the following short-term investments in securities at the end of 2017 and 2018 (all were held in the “trading” portfolio):
| Equity Security | Cost | 12/31/18 Fair Value | ||||
| A | $ | 96,000 | $ | 94,000 | ||
| B | 184,000 | 162,000 | ||||
| C | 126,000 | 136,000 | ||||
Required:
If the company recorded a $4,000 debit to its Fair value adjustment—Trading securities account at the end of 2018 as its fair value adjustment, what must have been the unrealized gain or loss recorded at the end of 2017?
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Please help me with questions
4.(prepare the adjusting entry) and 5. (calculate the ending value
of the fair value) at the bottom of the page.
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