The Following Information Is Related to the Short-Term Passive Investments

question 65

Multiple Choice

The following information is related to the short-term passive investments of Solo Company. Securities held on December 31, 2016 are described in the table below.
$\begin{array}{|r|r|r|r|r|r|}\hline\text { Securities } &\text { No. of }& \text { Cost/Share } &\text { Total } & \text { Value/Share } &\text { Total Market } \\&\text { Shares }&&\text { Cost }&&\text { Value }\\\hline\text { AAA } & 100 & \$ 29 & \$ 2,900 & \$ 34 & \$ 3,400 \\\hline \text { BBB } & 250 & 30 & 7,500 & 28 & 7,000 \\\hline \text { CCC } & 150 & 16 & 2,400 & 20 & 3,000 \\\hline&&&\$12,800&&\$13,400\\\hline\end{array}$
Early in 2017, the company sold 50 shares of BBB for $26 per share.
The journal entry to record the sale in 2017 will include:

• A)A credit to Short-term Equity Investments for $1,400.
• B)A credit to Unrealized Loss for $100.
• C)A credit to Loss on Sale of Investments for $100.
• D)A debit to Gain on Sale of Investments for $100.

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Definitions:

Low-value Bidders

describes participants in auctions or competitive bidding processes who offer relatively low prices for goods or services, possibly affecting market dynamics and pricing standards.

Receives $100

This phrase typically refers to an individual or entity obtaining a sum of $100, often in a transaction, payment, or monetary gift.

High-value Bidders

Individuals or entities willing to offer significantly higher prices in auctions, typically due to the perceived value of the item or contract.

Low-value Bidders

Participants in an auction or competitive process who offer significantly lower bids compared to others.