A Company Had Investments in Long-Term Available-For-Sale Securities B) C)

Multiple Choice

A company had investments in long-term available-for-sale securities.At the end of the current year the company's portfolio had a $731,000 cost and $730,000 market value.
What is the current year's adjustment to market value given the following account balances at the end of the prior year?

A)
$\begin{array}{|c|l|l|}\hline \text { Market Adjustment - Available-for-Sale............... } & 1,000 & \\\hline \text { Unrealized Gain Equity...................................... } & & 1,000 \\\hline\end{array}$

B)
$\begin{array}{|c|l|l|}\hline \text { Market Adjustment - Available-for-Sale............... } & 6,000 & \\\hline \text { Unrealized Gain Equity....................................... } & & 6,000 \\\hline\end{array}$

C)
$\begin{array}{|l|l|l|}\hline \text { Unrealized Gain Equity........................................................... } & 1,000 & \\\hline \text { Market Adjustment - Available-for-Sale..... } && 1,000 \\\hline\end{array}$

D)
$\begin{array}{|l|c|c|}\hline \begin{array}{l}\text { Unrealized Gain (Loss) - } \\\text { Equity............................. }\end{array} & 6,000 & \\\hline \text { Market Adjustment - Available-for-Sale. } & & 6,000 \\\hline\end{array}$

E)
$\begin{array}{|c|l|l|}\hline \text { Unrealized Gain (Loss) - Equity ................................................... } & 4,000 & \\\hline \text { Market Adjustment - Available-for-Sale.... } && 4,000 \\\hline\end{array}$