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  3. in 2023, sheridan limited purchased shares of sunl

In 2023, Sheridan Limited purchased shares of Sunland Corp. at a cost of $50,700. This...

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Accounting

In 2023, Sheridan Limited purchased shares of Sunland Corp. at a cost of $50,700. This was the first time the company had ever acquired an investment to be accounted for at fair value through other comprehensive income (FV-OCI). At December 31, 2023, the Sunland shares had a fair value of $41,700. Sheridan's income tax rate is 30%. Assume that any gains that are ultimately realized on the sale of the Sunland shares will be taxable as ordinary income when the gains are realized. (a) Prepare the necessary journal entries to record the unrealized loss and the related income taxes in 2023. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date December 31, 2023 Account Titles and Explanation Debit Credit December 31, 2023 (To record fair value adjustment) (To record deferred taxes on fair value adjustment) eTextbook and Media List of Accounts Save for Later Attempts: 0 of 3 used Submit

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