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Question

During the year ended December 31, 2018, and in the following months of January

and February 2019, Golden Valley Inc. had the following transactions pertaining to its held for trading investments:


Apr.1Purchased 2,000 Starr Corporation $5, preferred shares for $210,000 cash.

July1Received quarterly cash dividend.

2Sold 500 Starr shares for $55,500 cash.

Oct.

1Received quarterly cash dividend.

Nov.

22Starr declared the quarterly dividend on November 22, to preferred shareholders of record on December 15, payable on January 1.

Dec.

31Starr's shares were trading at $112 per share.

Jan.

31Due to an urgent need for cash, 700 Starr Corporation shares were sold despite a drop in the share price to $89 per share.Feb.

15Golden Valley sold an additional 500 Starr shares after the market recovered to $114 per share.


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How many Starr shares does Golden Valley own after the sale of shares on February 15, 2019? What are the cost and fair value of its investment on this date?

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