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Music City Owns Airport Corp Bonds as a Short-Term Equity

Question 84

Multiple Choice

Music City owns Airport Corp bonds as a short-term equity investment with a carrying value of $65,000.The current market value is $68,500.Music City should record a:


A) Debit to Unrealized Holding Loss for $3,500.
B) Credit to Unrealized Holding Gain for $3,500.
C) Credit to Held-for-Trading Investment Gain for $3,500.
D) Credit to Held-for-Trading Investment for $3,500.
E) Debit to Unrealized Holding Gain for $3,500.

Correct Answer:

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