Use the following information for questions.
On January 1, 2018, Burkett Corporation purchased, as a long-term investment, a $25,000, 5% bond, for $21,595. At this time, the market rate of interest was approximately 7%. The bond pays interest on January 1 and July 1. On December 31, 2018, the fair value of the bonds was $23,950.
-What is the entry (if any) to record the fair value adjustment on December 31, 2018? Assume the adjusting entry for the interest accrual has already been recorded.
A) No entry required.

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Use the following information for questions.
On January 1, 2018, Burkett Corporation purchased, as a long-term investment, a $25,000, 5% bond, for $21,595. At this time, the market rate of interest was approximately 7%. The bond pays interest on January 1 and July 1. On December 31, 2018, the fair value of the bonds was $23,950.
-What is the entry (if any) to record the fair value adjustment on December 31, 2018? Assume the adjusting entry for the interest accrual has already been recorded. 
A) No entry required.

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The Answer of Use the following information for questions.
On January 1, 2018, Burkett Corporation purchased, as a long-term investment, a $25,000, 5% bond, for $21,595. At this time, the market rate of interest was approximately 7%. The bond pays interest on January 1 and July 1. On December 31, 2018, the fair value of the bonds was $23,950.
-What is the entry (if any) to record the fair value adjustment on December 31, 2018? Assume the adjusting entry for the interest accrual has already been recorded. 
A) No entry required.

Use the Following Information for Questions