Ex 13-22 Fair value journal entries, available-for-sale investments ObJ.3, 4Storm, Inc. purchased the following available-for-sale securities during 2016, its first year of operations:
Name
Number of Shares
Cost
Dust Devil, Inc.
1,900
$ 81,700
Gale Co.
850
68,000
Whirlwind Co.
2,850
114,000
Total
$263,700
The market price per share for the available-for-sale security portfolio on December 31, 2016, was as follows:
Market Price per Share,Dec. 31, 2016
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Dust Devil, Inc. $40
Gale Co. 75
Whirlwind Co. 42
a. Provide the journal entry to adjust the available-for-sale security portfolio to fair value on December 31, 2016.
b. Describe the income statement impact from the December 31, 2016, journal entry.
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