On September 15, 2003, Donny Corporation purchased investments classified as Available-for-sale at a cost of $100,000. The proper adjusting entry on December 31, 2003, included a debit to Market Adjustment - Available for Sale Securities (A.F.S.) for $2,600. On December 31, 2004, the market value of the investments is $101,400. The December 31, 2004, adjusting entry will nclude a:
A) credit to Market Adjustment - A.F.S. of $1,400
B) credit to M arket Adjustment - A.F.S. of $1,200
C) debit to Market Adjustment - A.F.S. of $1,200
D) debit to Market Adjustment - A.F.S. of $1,400
E) credit to Market Adjustment - A.F.S. of $1,600
Ans: B) credit to M arket Adjustment - A.F.S. of $1,200
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