Brian Company purchased as a long- term investment 10% of the outstanding shares of Wilson Company. At the end of the year the market value of the shares had increased. The increase in market value of Wilson Company shares will affect Brian Company by:

Question

Quizplus · Accepted Answer

The increase in market value of the shares will be recorded as an unrealized gain, which increases assets (investment value) and stockholders' equity (through other comprehensive income or retained earnings, depending on the accounting treatment).

Brian Company Purchased as a Long- Term Investment 10% of the Outstanding