On March 15, Alan Company purchased bonds of Cameo Corp. for $35,000. The investment is classified as available-for-sale securities. This is the company's first and only investment in available-for-sale securities. On June 30, the bonds had a fair value of $34,000. Alan should do which of the following:
A. Record a credit to the Unrealized Gain?Income account.
B. Record a debit to the Fair Value Adjustment-AFS account.
C. Record a credit to the Unrealized Loss?Equity account.
D. Record a debit to the Unrealized Loss?Equity account.
E. Record a debit to the Unrealized Loss?Income account.
Answer: D
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