Carpark Services Began Operations in 20X1 and Maintains Long-Term Investments

question 94

Multiple Choice

Carpark Services began operations in 20X1 and maintains long-term investments in available-for-sale debt securities.The year-end cost and fair values for its portfolio of these investments follow.The year-end adjusting entry to record the unrealized gain/loss at December 31,20X1 is:

• A)Debit Unrealized Gain- Equity $9,000; Credit Fair Value Adjustment - Available-for-Sale (L
• T)$9,000.
• B)Debit Unrealized Loss - Equity $9,000; Credit Fair Value Adjustment - Available-for-Sale (L
• T)$9,000.
• C)Debit Unrealized Loss - Income $9,000; Credit Fair Value Adjustment - Available-for-Sale (S
• T)$9,000.
• D)Debit Fair Value Adjustment - Available-for-Sale (L
• T)$9,000; Credit Unrealized Loss - Equity $9,000.
• E)Debit Fair Value Adjustment - Available-for-Sale (L
• T)$9,000; Credit Unrealized Gain - Equity $9,000.

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Definitions:

International Trade

The exchange of goods, services, and capital across international borders, enabling countries to participate in global economies.

Globalization

The process of interaction and integration among people, companies, and governments worldwide, often leading to the exchange of ideas, products, and cultural aspects.

Multinational Corporations

Large corporations operating in multiple countries around the world, often exerting significant economic, political, and social influence in the regions where they operate.

Union Membership

Refers to the affiliation of individual workers with organized labor unions which advocate for the rights, wages, benefits, and working conditions of their members.