On November 10, 2017, Clark Inc

question 10

Multiple Choice

On November 10, 2017, Clark Inc. purchased, as a short-term passive investment, shares of Landon Corp. for $100,000 and shares of Norris Incorporated for $50,000. At the end of 2017, the fair market value of the stock of Landon was $80,000 and for Norris Incorporated was $65,000. How should Clark Inc. recognize these changes in market price?

• A)As a net unrealized loss of $20,000.
• B)As a net unrealized gain of $15,000.
• C)As a net unrealized loss of $5,000.
• D)No adjustment required since the total fair value is higher than the total original cost.

---

Definitions:

65 Years Old

A common age of retirement in many societies, also considered the beginning of senior citizen or elderly status.

Group of States

An alliance or collective of countries that collaborate for political, economic, or military purposes.

Elderly Men

Male individuals of advanced age, often considered to be in the later stage of life, commonly recognized as 65 years and older in many societies.