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On January 1, the Valuation Allowance for Trading Investments Account

Question 104

Essay

On January 1, the Valuation Allowance for Trading Investments account has a zero balance. On December 31, the cost of trading securities portfolio was $64,200, and the fair value was $67,000.

Prepare the December 31 adjusting journal entry to record the unrealized gain or loss on trading investments.

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