On March 15, Alan Company purchased 10% of Cameo Corp.'s stock for $35,000. This is the company's first and only stock investment. On Alan's June 30 year-end, the stock had a fair value of $34,000. Alan should do which of the following:
A. Record a debit to the Fair Value Adjustment-Stock account.
B. Report a decrease in the Gain on Sale of Investment income statement account.
C. Record a debit to the Unrealized Loss-Income account.
D. Record a credit to the Unrealized Gain-Income account.
E. Report an increase in the asset section of the balance sheet.
Answer: C
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