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

question 128

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 31,20X2 is:

• A)Debit Unrealized Gain - Equity $3,000; Credit Fair Value Adjustment - Available-for-Sale (L
• T)$3,000.
• B)Debit Fair Value Adjustment - Available-for-Sale (L
• T)$6,000; Credit Unrealized Loss - Equity $6,000.
• C)Debit Fair Value Adjustment - Available-for-Sale (L
• T)$3,000; Credit Unrealized Gain - Equity,$3,000.
• D)Debit Fair Value Adjustment - Available-for-Sale (L
• T)$3,000; Credit Unrealized Loss - Equity $3,000.
• E)Debit Fair Value Adjustment - Available-for-Sale (L
• T)$6,000; Credit Unrealized Gain - Equity $6,000.

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