On March 15,Alan Company Purchased 10% of Cameo Corp

Multiple Choice

On March 15,Alan Company purchased 10% of Cameo Corp.'s stock for $35,000.This is the company's first and only stock investment.On Alan's June 30 year-end,the stock had a fair value of $34,000.Alan should do which of the following:

A) Record a debit to the Fair Value Adjustment-Stock account.
B) Record a debit to the Unrealized Loss-Income account.
C) Report a decrease in the Gain on Sale of Investment income statement account.
D) Report an increase in the asset section of the balance sheet.
E) Record a credit to the Unrealized Gain-Income account.