1.investments with a cost of $19,000 have a current market value of $20,250. The adjusting entry will require a:

Question

Quizplus · Accepted Answer

The adjusting entry would require a debit to Allowance to Adjust Investment to Market for the difference between the cost and the market value, which is $2,250 ($20,250 - $19,000). Therefore, D is the correct choice. Options A and C are incorrect because they do not reflect the correct amount of the adjusting entry. Option B is incorrect because it suggests a credit to Allowance to Adjust Investment to Market, which is not correct.

1Investments with a Cost of $19,000 Have a Current Market