Chapter 17, Problem 8P

To determine

Fair value: Fair value is a selling price which is agreed by the buyer and seller. It is also the estimate of the potential market price of good, service or asset.

Unrealized holding gains and losses: An unrealized gain is a profit recorded on paper results from the investment. It occurs when shares prices increase after investor purchases it, but an individual has to sell it, till the time it is not sold the amount of increase in share price is recorded as an unrealized gain.

An unrealized loss is a loss recorded on paper results from the investment. It occurs when shares prices decrease after investor purchases it, but an individual has to sell it, till the time it is not sold the amount of decrease in share price is recorded as an unrealized loss.

Other revenues and gains: Other revenues and gains is the money which usually comes from the activities apart from the organization’s core operations.

(a) To record: To record the adjusting entries.

Given information: All the information related to B Corp. is provided in the question document.

To determine

(b) To determine: To determine the valuation adjustments.

Given information: All the information related to B Corp. is provided in the question document.

To determine

(c) To prepare: To prepare the journal entries for investments.

Given information: All the information related to B Corp. is provided in the question document.