B & L Company has a credit balance of $44,000 in its Allowance to Adjust Long-Term Investments to Market account at the end of 20xx, before adjustment. Its investment portfolio has a total cost of $300,000 and a market value of $264,000 at December 31, 20xx, a balance sheet date. The year-end adjustment entry that would be recorded in the books of B&L Company is:
a. Long-Term Investments 8,000
Realized Gain on Long-Term Investments 8,000
b. Allowance to Adjust Long-Term Investments to Market 8,000
Unrealized Loss on Long-Term Investments 8,000
c. Unrealized Loss on Long-Term Investments 8,000
Allowance to Adjust Long-Term Investments to Market 8,000
d. Long-Term Investments 8,000
Allowance to Adjust Long-Term Investments to Market 8,000
B
You might also like to view...
Under U.S. GAAP and IFRS, the firm measures the assets and liabilities of a discontinued operation at the lower of their _____ It reports any gain or loss that results in the Discontinued Operations section of the income statement. The Discontinued Operations section also includes income or loss from operating the unit for that year. Financial statements for prior years included for comparative
purposes classify those amounts also as a discontinued operation. a. carrying values or their fair values. b. net realizable values or their fair values. c. carrying values or the present value of future cash flows. d. net realizable values or the present value of future cash flows. e. liquidation values or the present value of future cash flows.
A minor can disaffirm a contract by his actions
Indicate whether the statement is true or false
Able, a resident of New York, has a dispute with Baker, a resident of Illinois, involving a contract signed and performed in New York. His damages amount to $50,000, and he wants to sue. The case can be brought:
a. in the New York state courts. b. in the New York federal court. c. only in the Illinois state courts. d. in either the New York state courts or the New York federal court.
Investment A and Investment B both have the same expected return, but Investment A is more
risky than Investment B. In the technical jargon of modern portfolio theory, Investment A is said to "dominate" Investment B. Indicate whether the statement is true or false