(Answered) 1on february 18 2013 union corporation purchased 10000

Accounting

1.On February 18, 2013, Union Corporation purchased 10,000 shares of IBM common stock as a long term investment at $60 per share. On December 31, 2013, and December 31, 2014, the market value of IBM stock is $58 and $61 per share, respectively.

Required:
1. What is the appropriate reporting category for this investment? Why?
2. Prepare the adjusting entry for December 31, 2013.
3. Prepare the adjusting entry for December 31, 2014.

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