Answer:
The Journal entry is as follows:
Fair value adjustment A/c Dr. $20,000
To unrealized holding gain or loss-income $20,000
(To record the adjustment)
Workings:
Ending balance = equity portfolio value - cost
= $160,000 - $132,000
= $28,000
Necessary Adjustment = Ending balance - Beginning balance
= $28,000 - $8,000
= $20,000
