Skywalker Limited purchased shares of Jedi Jewelers during 2015 for $124,000.Skywalker elected the fair value option for accounting for this investment.At year end 2015,2016,and 2017,this investment had a fair value of $120,000,$130,000,and $135,000,respectively.How will this investment be reported on the Balance Sheet at year-end,2017?
A) Investment in Jedi - $135,000
B) Investment in Jedi - $130,000,plus Fair Value Adjustment - Fair Value Option - $5,000
C) Investment In Jedi - $124,000
D) Investment in Jedi - $124,000,plus Fair Value Adjustment - Fair Value Option - $11,000
Correct Answer:
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