Exercise 15-7 Adjusting available-for-sale securities to fair value LO P3 On December 31, 2017, Reggit Company held the following short-term investments in its portfolio of available-for-sale securities. Reggit had no short-term investments in its prior accounting periods. Prepare the December 31, 2017, adjusting entry to report these investments at fair value.

debit unrealized loss-equity $15,000

credit fair value adjustment- Available-for-sale $15,000

Explanation:

Cost :

Verizano corporation bonds payable - 61,400

Preble corporation notes payable - 53,100

Lucerne company common stock - 88500

Fair value :

Verizano corporation bonds payable - 56,200

Preble corporation notes payable - 44,600

Lucerne company common stock - 85, 200

Total:

Cost = $(61,400 + 53100 + 88500) = $203,000

Fair value = $(56,200 + 44600 + 85200) = $188,000

Unrealized amount = cost - fair value

$203,000 - $188000 = ($15000) loss

debit unrealized loss-equity $15,000

credit fair value adjustment- Available-for-sale (ST) $15,000

the answer is true.  i do believe this is the answer because of the amount of wrecks people get into each year.  if you double this with avoiding those so said wrecks, that would make you a "skilled" driver.