Prepare fairbanks journal entries to record purchase

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Reference no: EM13136553

Fairbanks Corporation purchased 300 shares of Sherman Inc. common stock as an investment in trading securities for $9,900. During the year, Sherman paid a cash dividend of $3.05 per share. At year-end, Sherman stock was selling for $34.80 per share. Prepare Fairbanks's journal entries to record (a) the purchase of the investment, (b) the dividends received, and (c) the fair value adjustment.

Reference no: EM13136553

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