Year-End Adjustments for Temporary Investments
Mercury Corp Instructions
Provide the Entry to Record the Year-End Adjustment for Portfolio

question 56

Essay

Year-end adjustments for temporary investments
Mercury Corp. has the following portfolio of common shares (without significant influence) at December 31, 2020:
$\begin{array}{lll}\text { Investment } &\text { Cost }&\text { Fair value } \\\text { Albania Inc. } & \$ 480,000 & \$ 570,000 \\\text { Bulgaria Ltd. } & 90,000 & 620,000 \\\text { Czech Corp. } & 120,000 & 220,000\\\text { Total }&\$ 690,000&\$ 1,410,000\end{array}$
Instructions
Provide the entry to record the year-end adjustment for these investments, assuming Mercury uses one control account and has adopted the FV-NI model.

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Definitions:

Responsiveness

The quality of reacting quickly and positively, often used in contexts ranging from customer service to mobile or web design, indicating agility and attentiveness to needs or changes.

Midpoint Formula

A method used in economics to calculate the percentage change in a variable by dividing the change by the average of the initial and final values.

Price Elasticity

A measure of the sensitivity of quantity demanded or supplied to a change in price, indicating how a price change can affect market dynamics.

Absolute Value

The non-negative value of a number without regard to its sign.