Carpark Services began operations in 20X1 and maintains long-term investments in available-for-sale debt securities. The year-end cost and fair values for its portfolio of these investments follow. The year-end adjusting entry to record the unrealized gain/loss at December 31, 20X2 is:Available-for-Sale Debt SecuritiesCost Fair ValueDecember 31, 20X1$246,000? $236,900?December 31, 20X2$330,000? $325,600?December 31, 20X3$425,000? $429,400?
A. Debit Fair Value Adjustment - Available-for-Sale (LT) $4700; Credit Unrealized Loss - Equity $4700.
B. Debit Unrealized Gain - Equity $4400; Credit Fair Value Adjustment - Available-for-Sale (LT) $4400.
C. Debit Fair Value Adjustment - Available-for-Sale (LT) $4400; Credit Unrealized Gain - Equity, $4400.
D. Debit Fair Value Adjustment - Available-for-Sale (LT) $4400; Credit Unrealized Loss - Equity $4400.
E. Debit Fair Value Adjustment - Available-for-Sale (LT) $4700; Credit Unrealized Gain - Equity $4700.
Answer: A
You might also like to view...
The element of the marketing mix demonstrated when an art gallery suggests a $2.00 donation at the door is ________.
A. promotion B. place C. price D. product E. philanthropy
Firms with tangible long-term assets and predictable cash flows, such as electric utilities, tend to have balance sheets with a
a. high proportion of long-term debt (80% or more). b. low proportion of long-term debt (20% or less). c. high proportion of shareholders' equity (80% or more). d. high proportion of cash (80% or more). e. high proportion of retained earnings (80% or more).
How does HRM affect employee engagement?
What will be an ideal response?
When using the persuasive approach to write a sales letter for a new product, you should begin by:
A. asking for the desired action on the part of the reader. B. presenting benefits that generate the reader's interest. C. getting the reader's attention in the opening sentence. D. providing information that will generate a desire on the reader's part.