Question

Pacific Fishing Inc.'s actively traded non-strategic investments as of December 31, 2020, are as follows: Enviroclean common shares Northern Utilities common shares Imperial Oil common shares Farmer Solar Limited common shares Cost $17,700 42,850 25,300 34,900 Fair Value $19,600 42,130 24,33e 32,030 Pacific Fishing Inc. had no investments prior to 2020. Required: 1. Prepare the fair value adjustment at December 31, 2020, based on the information provided.

Answer 1

Investment income (Loss)	2,660
		Investments – Enviroclean shares	1,900
		Investments – Farmer Solar Limited shares		2,870
		Investments – Imperial Oil shares		970
		Investments – Northern Utilities shares		720

2. Illustrate how the investments will be reported on the December 31, 2020, balance sheet.

Current Assets:

    Investments

    At fair Value 118,090.00

Answer 2

Fair value adjustment account

Particulars	cost	fair value	gain or loss
Enviroclean common shares	$17700	$19600	1900
Northern common utility shares	42850	42130	(720)
Imperial oil common shares	25300	24330	(970)
Former solar limited common shares	34900	32030	(2870)
Total	120750	118090	-2660

Unrealized loss account dr. 2660

Fair value adjustment account cr. 2660