On March 15, Alan Company Purchased 10,000 Shares of Cameo

Multiple Choice

On March 15, Alan Company purchased 10,000 shares of Cameo Corp. stock for $35,000. The investment is classified as available-for-sale securities. This is the company's first and only investment in available-for-sale securities. On June 30, 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-AFS account.
B) Report an increase in the asset section of the balance sheet.
C) Report a decrease in the Gain on Sale of Investment income statement account.
D) Record an increase to the Unrealized Gain-Income account.
E) Record an increase to the Unrealized Loss-Equity account.