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Ewok Enterprises Recently Elected the Fair Value Option to Account

question 134

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Ewok Enterprises recently elected the fair value option to account for its investment in Yoda Inc.Ewok purchased the shares for $210,000 and the shares are currently trading for $195,000 at year-end.Record the journal entries needed to purchase the investment,then adjust it to fair value.Then,show how this investment will be reported on the balance sheet.


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