Tomlin Enterprises has a credit balance of $80,000 in its Allowance to Adjust Long-Term Investments to Market account before adjustment. Its investment portfolio has a total cost of $500,000 and a market value of $450,000. The year-end adjustment entry that would be recorded in the books of Tomlin Enterprises is:
A) Long-Term Investments 30,000 Allowance to Adjust Long-Term Investments to Market 30,000
B) Allowance to Adjust Long-Term Investments to Market 30,000 Unrealized Loss on Long-Term Investments 30,000
C) Allowance to Adjust Long-Term Investments to Market 50,000 Long-Term Investments 50,000
D) Unrealized Loss on Long-Term Investments 50,000 Long-Term Investments 50,000
B
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