Way Aircraft Corporation acquired the following equity investments at the beginning of year 1 to...
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Way Aircraft Corporation acquired the following equity investments at the beginning of year 1 to be held in an available-for-sale portfolio DesTIption Number of shares Market price per share x Share acquisition price $2,391,400 Rex Group Boston Brothers Yanev Associates Lucas Company 65,000 $66 $4,290,000 108,700 94,000 40,000 $22 X S5 x $18 x $470,000 $720,000 Share prices at the end of years 1 and 2 are presented below. Rex Boston Yanev Lucas Fair Value End of year1 End of year 2 Group Brothers Associates Company $24 $19 $2 $1 $19 $23 $62 S57 Requirements Prepare the journal entry to record the acquisition of the investments Prepare the journal entry to record the end of year 1 adjusting entry for the available-for-sale portfolio. a. b. c. Assume that Way sells 37,000 Yanev shares for S 21 per share at the beginning of year 2. Prepare the journal entry required to record the sale. Way does not adjust the fair value adjustment account at this time Prepare the journal entry to record the year 2 adjusting entry d
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