On July 31,Potter Co.purchased 2,000 shares of GigaTech stock for $16,000.GigaTech has 100,000 shares currently outstanding.This is the company's first and only stock investment.On October 31,which is Potter's year-end,the stock had a fair value of $20,000.Potter should record a:
A) Credit to Unrealized Gain-Income for $4,000.
B) Credit to Fair Value Adjustment-Stock for $4,000.
C) Credit to Investment Revenue for $4,000.
D) Debit to Unrealized Loss-Income for $4,000.
E) Debit to Unrealized Gain-Equity for $4,000.
Correct Answer:
Verified
Q66: A company had net income of $2,660,000,
Q77: Long-term investments in held-to-maturity debt securities are
Q82: Available-for-sale debt securities are:
A)Recorded at cost and
Q99: Consolidated financial statements:
A)Show the financial statements of
Q101: MotorCity,Inc.purchased 40,000 shares of Shaw common stock
Q104: On March 15,Alan Company purchased 10% of
Q105: Investments in trading securities:
A)Include only equity securities.
B)Are
Q106: Carpark Services began operations in 20X1 and
Q107: Six months ago,a company purchased stock investments
Q108: Segmental Manufacturing owns 35% of Glesson Corp
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents