When a cash and investment pool of a certain city was established, the debt service fund transferred investments to the pool having a cost of $3,000,000 but a current fair market value of $2,900,000. To record this transaction, a single journal entry was made by the debt service fund that included which of the following?
A. A debit to Revenues-Change in Fair Value of Investments in the amount of $100,000.
B. A debit to Equity in Pooled Cash and Investments in the amount of $3,000,000.
C. A credit to Investments in the amount of $100,000.
D. A debit to Investments in the amount of $2,900,000.
Answer: A
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