At the Beginning of the Year, the Permanent Fund of Rapid

question 16

Multiple Choice

At the beginning of the year, the permanent fund of Rapid City had an investment portfolio with a historical cost of $200,000 and a fair value of $220,000.There were no purchases or sales of securities during the year.At year end the portfolio had a fair value of $240,000.At the end of the year Rapid City will account for this increase in fair value in which of the following ways?

• A)Credit Investment Income, $20,000.
• B)Credit Investment Income, $40,000.
• C)Credit Fund Balance, $20,000.
• D)No entry is made to recognize increase in fair value.

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Definitions:

Mutations

Hereditary alterations in the genetic material that can lead to changes in the phenotype of an organism, contributing to genetic diversity.

Cell Division

The process by which a parent cell divides into two or more daughter cells, crucial for growth, reproduction, and repair in living organisms.

Tumors

Abnormal growths of tissue that can be benign (non-cancerous) or malignant (cancerous), resulting from uncontrolled cell division.

Cytomegalovirus

A common type of herpes virus that usually causes mild infections but can be serious for individuals with weakened immune systems or newborns.