At December 31, 2017, the available-for-sale debt portfolio for Indigo, Inc. is as follows.

Security		Cost		Fair Value		Unrealized Gain (Loss)
A		$123,375		$105,750		$(17,625	)
B		88,125		98,700		10,575
C		162,150		179,775		17,625
Total		$373,650		$384,225		10,575
Previous fair value adjustment balance—Dr.						2,820
Fair value adjustment—Dr.						$77,55

On January 20, 2018, Indigo, Inc. sold security A for $106,455. The sale proceeds are net of brokerage fees. Indigo, Inc. reports net income in 2017 of 846,000 and in 2018 of 987,000.

Prepare the adjusting entry at December 31, 2017, to report the portfolio at fair value. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Account Titles and Explanation	Debit	Credit

Answer rating: 100% (QA)

Answer Statement of Comprehensive Income For the year ended December ... View the full answer