Skywalker Limited purchased an equity investment in Jedi Jewelers during 2018 for $131,000. Skywalker has significant influence over Jedi. Skywalker elected the fair value option for accounting for this investment. At year-end 2018, 2019, and 2020, this investment had a fair value of $120,000, $130,000, and $138,000, respectively. How will this investment be reported on the Balance Sheet at year-end, 2020?
A) Investment in Jedi - $138,000
B) Investment in Jedi - $130,000, plus Fair Value Adjustment - Fair Value Option - $7,000
C) Investment in Jedi - $131,000
D) Investment in Jedi - $131,000, plus Fair Value Adjustment - Fair Value Option - $7,000
Correct Answer:
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