Multiple Choice
The fair value of a long-term available-for-sale security has increased from the last carrying value. The company uses an allowance account to adjust the investment. The journal entry to record this increase will include:
A) a debit to the Allowance to Adjust Investment in Available-for-Sale Securities to Market.
B) a credit to the Allowance to Adjust Investment in Available-for-Sale Securities to Market.
C) a debit to the Unrealized Gain on Investment in Available-for-Sale Securities.
D) a credit to the Unrealized Loss on Investment in Available-for-Sale Securities.
Correct Answer:
Verified
Correct Answer:
Verified
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