Record the adjusting entry for December 31, 2016.

Record the adjusting entry for December 31, 2017.

Note: Enter debits before credits.

On February 18, 2016, Union Corporation purchased 28,000 shares of IBM common stock as a long-term investment at $78 per share. On December 31, 2016, and December 31, 2017, the market value of IBM stock is $76 and $79 per share, respectively.

Required:

2. & 3.

Prepare the adjusting entry for December 31, 2016 and 2017. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Record the adjusting entry for December 31, 2016. Record the adjusting entry for December 31, 2017. Note: Enter debits before credits. Choose form the list below No journal entry required Cash Cash surrender value of life insurance Discount on bond investment Fair value adjustment Gain on life insurance settlement Gain on sale of investments Income summary Insurance expense Investment in bonds Investment in common shares Investment in U.S. treasury bills Investment in U.S. treasury bonds Investment revenue Investment revenue receivable Loss on sale of investments Net unrealized holding gains and lossesI/S Net unrealized holding gains and lossesOCI Other-than-temporary impairment lossI/S Other-than-temporary impairment lossOCI Retained earnings