During 2012, Walker Corporation acquired 500 shares of Wychek stock at $30 per share. Walker Corporation accounted for the stock as available-for-sale securities. All declines in market value are considered to be temporary. The market price per share of Wychek's stock as of December 31, 2012 and 2013, is $22.50 and $37.50, respectively. Given this information, the correct adjusting entry by walker at December 31, 2013, would include a credit to

Question

Quizplus · Accepted Answer

The increase in market value from $22.50 to $37.50 per share results in an unrealized gain of $7,500 (500 shares x $15 increase), which should be credited to Unrealized Increase in Value of Available-for-Sale Securities - Equity.

During 2012, Walker Corporation Acquired 500 Shares of Wychek Stock