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California Designs is diversifying its investment portfolio by making a small investment (less than 5%) in...

California Designs is diversifying its investment portfolio by making a small investment (less than 5%) in the common stock of Oregon Outfitters. California Designs engages in the following transactions relating to its investment:

January 1  Purchases 1,200 shares of Oregon Outfitters common stock for $25 per share. The investment is properly classified as an available-for-sale security.

July 12 Sells 350 shares of Oregon Outfitters stock for $23 per share.

September 30 Receives a cash dividend of $1 per share.

December 31 Adjusts the investment to fair value. The fair value of Oregon Outfitters stock is now $20 per share.

1. Record each of these transactions, including the December 31 adjustment to fair value.

A. Record the purchase of investment

B. Record the Sale of investment

C. Record the receipt of cash dividend of $1 per share

D. Record the adjustment of the investment to fair value

2. Calculate the balance of the investments account on December 31st.

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