Ewok Enterprises Recently Elected the Fair Value Option to Account

question 2

Multiple Choice

Ewok Enterprises recently elected the fair value option to account for its investment in Yoda Inc. Ewok purchased the shares for $204,000 and the shares are currently trading for $190,000 at year-end. What is the carrying value of this investment on the balance sheet of Ewok?

• A) $204,000
• B) $14,000
• C) $394,000
• D) $190,000

---

Definitions:

Unpaid Dividends

Dividends that have been declared by a company’s board of directors but have not yet been paid out to shareholders.