Answer:
unrealized loss 58,000 debit
investment on IBM 58,000 credit
--to record for a--
investment on IBM 42,000 debit
unrealized loss 42,000 credit
--to record for b--
investment on IBM 200,000 debit
unrealized loss 150,000 credit
unrealized gain 50,000 credit
--to record for c--
Explanation:
a) 1,187,000 - 1,245,000 = -58,000
as the investment decrased again, we post an unrealized loss to OCI as by 58,000
b) 1,287,000 - 1,245,000 = 42,000
as there is an urealized loss yet to realized swe will reduce it. As far as the stock investment increasetheir valeu this loss will be write-off
c) 1,425,000 - 1,245,000 = 200,000
here we have enought to offset the unealized loss entirely. And even recognize an unrealzied gain.
