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A Stock Investment Classified as Trading Securities Is Purchased for $73,500

Question 149

Multiple Choice

A stock investment classified as trading securities 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-Trading.
D) credit to Unrealized Loss-Income.

Correct Answer:

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