At January 1, 2017, the Equity Securities Portfolio Held by Darma

Essay

At January 1, 2017, the equity securities portfolio held by Darma Corporation consisted of the following investments:
1. 2,500 shares of H2 common stock purchased for $43 per share.
2. 1,500 shares of Krypto common stock purchased for $50 per share.
At December 31, 2017, the fair values per share were H2 $36 and Krypto $54.
Instructions
(a) Prepare a schedule showing the cost and fair value of the portfolio at December 31, 2017.
(b) Prepare the adjusting entry to report the portfolio at fair value at December 31, 2017.