Prepare the journal entry(ies)

In March, All Starr purchased Pacific Loans and Savings (Pacific) securities, which are listed on the Toronto Stock Exchange. Pacific was selected as a good investment based on its history of dividends. Unfortunately, Pacific has dropped in value since it was acquired due to the slowdown in the housing market and recent government policy changes requiring larger down payments for first-time home-buyers. These investments are available for trading.

	Number of shares	Acquisition cost	Sell price	Fair market value at December 15
Pacific shares	1500	$22	n/a	$18.95

Note: Assume that the fair market value will not fluctuate from December 15 to December 31.

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Since All Starr is recording the information at yearend December 31 we need to address two separate ... View the full answer