Solved

In June, Potter Corp Paid $25,000 for 1,000 Shares of Weasley

Question 24

Multiple Choice

In June, Potter Corp paid $25,000 for 1,000 shares of Weasley Corp, which was classified as a long-term available-for-sale investment. At year-end, the fair value of the investment is $27,500. Potter will report


A) nothing until the investment is sold.
B) a $2,500 unrealized gain in its income statement.
C) a $2,500 realized gain in its income statement.
D) a $2,500 unrealized gain as other comprehensive income.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions