Solved

On 1 January 20X0 Jesse Company Purchased a 'Small Holding

Question 16

Multiple Choice

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:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents