On March 15, Carter Company purchased 10,000 Tonya Corp. shares for $35,000. The investment is classified as available-for-sale securities. On June 30, the shares had a fair value of $38,000. Carter should do all of the following except:
A) Record an increase to the Fair value Adjustment-AFS account.
B) Record an increase to the Unrealized Gain - Equity account.
C) Report the increase in the equity section of the balance sheet.
D) Report the increase in the asset section of the balance sheet.
E) Record an increase to the Unrealized Gain - Income account.
Correct Answer:
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