Walsh Company purchased 1,000 shares of Pierce Company for $20 per share and classified the investment as trading securities. At the end of the year, the fair market value of the investment was $23 per share. How should Walsh recognize this change?
A) Debit the investment account by $23,000.
B) Credit the investment account by $3,000.
C) Report an unrealized gain on the income statement.
D) Show an unrealized loss on the balance sheet.
Correct Answer:
Verified
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