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Jones Enterprises Purchased a Bond on August 31 of the Current

Question 177

Multiple Choice

Jones Enterprises purchased a bond on August 31 of the current year for $250,000 and classified the investment as an available-for-sale debt.The market value of the available-for-sale debt investment at year-end is $255,000.The adjustment is ________.


A) subtracted from the Available-for-Sale Debt Investments account to arrive at the amount reported on the balance sheet
B) recorded as a debit to Fair Value Adjustment - Available-for-Sale
C) recorded as a debit to Unrealized Holding Gain - Available-for-Sale
D) reported as a $5,000 unrealized holding gain in the income statement

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