A company purchased a long-term available-for-sale security at a cost of $50,000. At year end, the fair value is $50,290. The adjusting entry requires a credit to Allowance to Adjust Investment in Available-for-Sale Securities to Market for $290.

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The Answer of A company purchased a long-term available-for-sale security at a cost of $50,000. At year end, the fair value is $50,290. The adjusting entry requires a credit to Allowance to Adjust Investment in Available-for-Sale Securities to Market for $290.

A Company Purchased a Long-Term Available-For-Sale Security at a Cost