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 $40,000 has a year-end market value of $42,250. The year-end adjusting entry requires a:

A) debit to Long-Term Investments for $2,250.
B) debit to Allowance to Adjust Investments to Market for $2,250.
C) credit to Allowance to Adjust Investments to Market for $2,250.
D) debit to Unrealized Gain on Investment for $2,250.