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A Passive Investment in Equity Securities Was Purchased on April

Question 22

Multiple Choice

A passive investment in equity securities was purchased on April 1 for $900. On December 31, the market value of those securities is $700. Which of the following is part of the adjusting entry necessary on December 31?


A) Debit Unrealized Loss for $700
B) Debit Realized Loss on for $200
C) Credit Short-term Equity Investments for $200
D) Credit Unrealized Loss for $200

Correct Answer:

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