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 debt securities follows. The year-end adjusting entry to record the unrealized gain/loss at December 31, 20X2 is:Available-for-Sale SecuritiesCost Fair ValueDecember 31, 20X1$265,000? $253,000?December 31, 20X2$352,000? $366,000?
A. Debit Fair Value Adjustment - Available-for-Sale (LT) $14,000; Credit Unrealized Loss - Equity $14,000.
B. Debit Fair Value Adjustment - Available-for-Sale (LT) $14,000; Credit Unrealized Gain - Equity, $14,000.
C. Debit Fair Value Adjustment - Available-for-Sale (LT) $26,000; Credit Unrealized Loss - Equity $12,000; Credit Unrealized Gain - Equity, $14,000.
D. Debit Fair Value Adjustment - Available-for-Sale (LT) $26,000; Credit Unrealized Gain - Equity $12,000.
E. Debit Unrealized Gain - Equity $14,000; Credit Fair Value Adjustment - Available-for-Sale (LT) $14,000.
Answer: C
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