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A Company Purchased Shares of Stock of Another Company for $75,000

Question 68

Multiple Choice

A company purchased shares of stock of another company for $75,000 during 2014;the shares were classified as available-for-sale.The shares' market value was $79,000 at the end of 2014 and $81,000 at the end of 2015.Which of the following statements correctly describes the investor's accounting for the investment?


A) A realized gain of $4,000 was recorded during 2014.
B) An unrealized gain of $6,000 was recorded during 2015.
C) An unrealized gain of $2,000 was recorded during 2015.
D) A realized gain of $2,000 was recorded during 2015.

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