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ValleyView Company ValleyView Company Acquires Common Stock of Kansas Enterprises

Question 53

Multiple Choice

ValleyView Company ValleyView Company acquires common stock of Kansas Enterprises for $400,000 on November 1, 2013, and designates this investment as available-for-sale.The fair value of these shares is $435,000 on December 31, 2013.ValleyView sells these shares on August 15, 2014, for $480,000.
(Refer to ValleyView.) The journal entry to measure securities available-for-sale on December 31, 2013 is:


A) Unrealized Holding Gain on Securities Available-for-Sale................35,000
Marketable Securities...................35,000
B) Unrealized Holding Gain on Securities Available-for-Sale................35,000
Common Stock......................35,000
C) Common Stock..................35,000
Unrealized Holding Gain on Securities Available-for-Sale............35,000
D) Marketable Securities............................35,000
Cash....................35,000
E) Marketable Securities.............. 35,000
Unrealized Holding Gain on Securities Available-for-Sale......35,000

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