PM Distributors began Year 2 with Equity Investments of $8,100 (which consisted of a single investment) as well as a debit balance of $1,000 in the Fair Value Adjustment - Equity Investments account. PM does not have significant influence over the investee, and the investment has a readily determinable fair value. This trading security was sold for $9,100 during Year 2. How much was the gain or loss for the sale of this investments and how is it recorded?
A) No gain or loss reported, as the investment was sold for the adjusted fair value
B) Unrealized Gain of $1,000, reported as part of Other Comprehensive Income
C) Realized Loss of $1,000, reported as part of Net Income
D) Realized Gain of $1,000, reported as part of Net Income
Correct Answer:
Verified
Q63: Rhoads purchased common shares of Company A
Q64: On January 7, 2018, Webb Industries purchased
Q65: If an investor company has control over
Q66: Companies report equity investments with no significant
Q67: If an investor company has significant influence
Q69: On January 7, 2018, Webb Industries purchased
Q70: Brightney purchased common shares of Company A
Q71: L & J purchased common shares of
Q72: On January 7, 2018, Webb Industries purchased
Q73: Which of the following is a difference
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