On May 15, 2014, Cream Corp.purchased 1,000 common shares of Regal Bank for $25,000, as a Fair Value through Net Income (FV-NI) equity investment.At December 31, 2014, the fair value of these shares was $22,800.The required adjusting entry to reflect this fact is
A) debit Fair Value-Net Income Investment, Cr Holding Gain on Investment (OCI) $22,800.
B) debit Holding Gain on Investment (OCI) , credit Fair Value-Net Income Investment
The Accounting Information System 3 - 17
$22,800.
C) debit Fair Value-Net Income Investment, Cr Investment Income $2,200.
D) debit Investment Loss, credit Fair Value-Net Income Investment $2,200.
Correct Answer:
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