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The Allowance to Adjust Investments to Market Account Has a Current

Question 91

Multiple Choice

The Allowance to Adjust Investments to Market account has a current credit balance of $1,150 after adjustment. Available-for-sale investments have a current market value of $20,000. The carrying value of the investments is:


A) $20,000.
B) $21,150.
C) $18,850.
D) unknown. The carrying value cannot be computed without knowing the cost of the investment.

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