Prepare the adjusting entry at waterway fiscal year-end

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Question - Throughout the current fiscal year, Waterway Corporation acquired a number of temporary investments for the purpose of making a profit. Waterway uses a single account to record all of its temporary investments. The following information is provided by Waterway relating to these investments:

Investment

Carrying Amount

Fair Value

TRX Manufacturing

$22,600

$17,600

TCTP Ltd.

11,100

17,130

BCHRS Company

19,500

20,520

RPTR Ltd.

30,500

32,000

Total

$83,700

$87,250

Required - Prepare the adjusting entry at Waterway's fiscal year-end to adjust the investment portfolio to fair value, assuming the company uses the fair value through net income (FV-NI) model.

Reference no: EM133005152

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