Torborg Corp $\begin{array}{lrr} \text { Short-term Equity Investments } &3,600\\ \text { Unrealized Gain} &&3,600\\\end{array}$

question 91

Short Answer

Torborg Corp. purchased short-term passive investments in equity securities on December 23 for $3,000. On December 31, the market value of those securities is $3,600. Which one of the following journal entries is appropriate on December 31?
a.
$\begin{array}{lrr} \text { Short-term Equity Investments } &3,600\\ \text { Unrealized Gain} &&3,600\\\end{array}$

b.
$\begin{array}{lrr} \text { Short-term Equity Investments} &600\\ \text { Unrealized Gain } &&600\\\end{array}$


c.
$\begin{array}{lrr} \text { Short-term Equity Investments } &600\\ \text { Unrealized Price Increase } &&600\\\end{array}$


d. $\begin{array}{lrr} \text { No entry is required. } &\\\end{array}$

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Definitions:

Correct Verb

The accurate or suitable use of a verb in a sentence, aligning with the subject in number and tense for grammatical consistency.

Careful Planning

The process of thoughtfully organizing tasks and resources in order to achieve a specific goal, emphasizing attention to detail and foresight.

Tsunami

A series of large ocean waves typically caused by underwater earthquakes, volcanic eruptions, or landslides.

Coastline

The area where land meets the sea or ocean, often characterized by its geological and geographical features.