Plotner Corporation has the following trading portfolio of stock investments as of December 31, 2019.              Security                     Cost                   Fair Value                A                      $19,000                   $15,000                B                        22,000                     27,000                C                        34,000                     29,000                                        $75,000                   $71,000   On January 22, 2020, Plotner Corporation sold security C for $32,000.   Instructions (a)    Prepare the adjusting entry for Plotner Corporation on December 31, 2019, to report the portfolio at fair value. (b)    Indicate the balance sheet and income statement presentation of the fair value data for Plotner Corporation at December 31, 2019. (c)    Prepare the journal entry for the 2020 sale.

Question

Plotner Corporation has the following trading portfolio of stock investments as of December 31, 2019.

 

           Security                     Cost                   Fair Value

               A                      $19,000                   $15,000

               B                        22,000                     27,000

               C                        34,000                     29,000

                                       $75,000                   $71,000

 

On January 22, 2020, Plotner Corporation sold security C for $32,000.

 

Instructions

(a)    Prepare the adjusting entry for Plotner Corporation on December 31, 2019, to report the portfolio at fair value.

(b)    Indicate the balance sheet and income statement presentation of the fair value data for Plotner Corporation at December 31, 2019.

(c)    Prepare the journal entry for the 2020 sale.

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