Martley Corp. had the following investments in its long- term investment portfolio accounted for at fair value through other comprehensive income ( FV- OCI) on December 31, 2020:

Investment	Cost and carrying value Martley	Fair Value
1,500 shares of Dell Inc. Common	$165,000	$160,000
5,000 shares of Bell Aliant common	382,000	372,000
400 shares of Able Corp. preferred shares	142,000	145,200
Total	$689,000	$677,200

All the investments were purchased in 2020. Martley follows IFRS and applies the FV- OCI model without recycling. In 2021, Martley completed the following transactions:

Mar. 1 Sold the 1,500 shares of Dell Inc. common at $ 85 per share, less fees of

$ 2,100.

Apr. 1 Bought 900 shares of N,S. Corp. common at $ 145 per share, plus fees of

$ 2,200.

Martley Corp’s portfolio appeared as follows on December 31, 2021:

Investment	Cost and carrying amount	Fair Value
900 shares of N.S. Corp. Common	$132,700	$130,800
5,000 shares of Bell Aliant common	372,000	380,000
400 shares of Able Corp. preferred shares	145,200	146,000
Total	$649,900	$656,800

Required:

Prepare the journal entry for Martley Corp for:

1. The 2020 valuation adjusting entry.
2. The sale of the Dell Inc. shares.
3. The purchase of the N.S. Corp. shares.
4. The 2021 valuation entry.

Answer rating: 100% (QA)

1 The 2020 valuation adju... View the full answer