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A Stock Investment (Less Than 20% Ownership) Is Purchased for $73,500.At

Question 151

Multiple Choice

A stock investment (less than 20% ownership) is purchased for $73,500.At year end, when the market value of the stock is $65,000, the adjusting entry includes a


A) credit to Stock Investments.
B) debit to Loss on Sale of Stock Investment.
C) credit to Fair Value-Adjustment-Stock.
D) credit to Unrealized Gain or Loss-Income.

Correct Answer:

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