On July 31,Potter Co

Multiple Choice

On July 31,Potter Co.purchased 2,000 shares of GigaTech stock for $16,000.GigaTech has 100,000 shares currently outstanding.This is the company's first and only stock investment.On October 31,which is Potter's year-end,the stock had a fair value of $20,000.Potter should record a:

A) Credit to Unrealized Gain-Income for $4,000.
B) Credit to Fair Value Adjustment-Stock for $4,000.
C) Credit to Investment Revenue for $4,000.
D) Debit to Unrealized Loss-Income for $4,000.
E) Debit to Unrealized Gain-Equity for $4,000.