Six months ago,a company purchased an investment in stock for $70,000.The investment is classified as available-for-sale securities.The current fair value of the stock is $68,500.The company should record a:
A) Debit to Unrealized Loss-Equity for $1,500.
B) Credit to Unrealized Gain-Equity for $1,500.
C) Debit to Investment Revenue for $1,500.
D) No entry is required.
E) Credit to Investment Revenue for $1,500.
Correct Answer:
Verified
Q104: On January 4,Year 1,Barber Company purchased 5,000
Q105: On November 12,Higgins,Inc. ,a U.S.Company,sold merchandise on
Q106: McVeigh Corp.owns 40% of Gondor Company's common
Q107: On July 31,Potter Co.purchased 2,000 shares of
Q108: MotorCity,Inc.purchased 40,000 shares of Shaw common stock
Q110: On March 15,Alan Company purchased 10,000 shares
Q111: When a U.S.company makes a credit sale
Q112: Bharrat Corporation purchased 40% of Ferris Corporation
Q113: If a company owns more than 20%
Q114: On January 4,Year 1,Barber Company purchased 5,000
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents