On 1 January 20X0 Jesse Company purchased a 'small holding' of 1500 shares in Nulla Ltd for a fair value of $2000.On 1 January 20X1 the fair value of the shares was assessed as having risen to $2500.What journal entry would be made on 1 January 20X1 to recognise the change in value?
A) Debit investment in Nulla Ltd $500; credit gain on investment revaluation, $500
B) Debit investment in Nulla Ltd $500; credit investment revaluation reserve, $500
C) No entry is necessary
D) None of the above
Correct Answer:
Verified
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