An Investment in Common Stock Acquired During the Year at a Cost

Multiple Choice

An investment in common stock acquired during the year at a cost of $20,000 has a year- end market value of $21,250. The year- end adjusting entry requires a:

A) debit to Long- Term Investments for $1,250.
B) credit to Allowance to Adjust investment to Market for $1,250.
C) debit to Allowance to Adjust Investments to Market for $1,250.
D) debit to Unrealized Gain on Investment for $1,250.